OUTCOMES OF GRANT ASSISTANCE FOR ENTERPRISES

OUTCOMES OF GRANT ASSISTANCE FOR ENTERPRISES More Work and New Jobs

Programme for Local Self-Government and Economic Development - EU ProLocal

May 2019

Published by:

Year of publishing

Deutsche Gesellschaft für

2019

Internationale Zusammenarbeit (GIZ) GmbH

Design Sanjin Halilović

Registered offices: Bonn and Eschborn, Germany

Photography Imrana Kapetanović

Programme for Local

Jasmin Agović

Self-Government and Economic Development, EU ProLocal

English translation Ana Marijanović

Sarajevo Office

Tijana Medić

Splitska 6 71000 Sarajevo

Disclaimer

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This publication was prepared in the frame of the Programme for Local Self-Government

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and Economic Development in Bosnia and Herzegovina, EU ProLocal, funded by the European Union and the German Government and implemented by Deutsche

Banja Luka Office

Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

Patrijarha Makarija Sokolovića 3 78000 Banja Luka

This publication has been produced with the assistance of the European Union. The

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contents of this publication are the sole responsibility of GIZ and can in no way be taken

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to reflect the views of the European Union.

info@eu-prolocal.ba www.eu-prolocal.ba www.giz.de

CONTENT FOREWORD

1

SUMMARY RESULTS OF EUR 3,000,000 GRANT ASSISTANCE

2

SUCCESS STORIES

3

GRANT FUNDING AWARDS SCHEME

14

IN MORE DETAIL ON PROJECTS OF SMALL AND MEDIUM ENTERPRISES (MEASURE 1)

16

METAL PROCESSING

17

WOOD PROCESSING

73

AGRO-BUSINESS

111

IN MORE DETAIL ON DEVELOPMENT PARTNERSHIPS PROJECTS (MEASURE 4)

137

FOREWORD Towards Economic Development in Bosnia and Herzegovina During the period leading to June 2019, the Local Self-Governance and Economic Development Program in BiH – EU ProLocal has actively supported the development of internal capacities of small and medium enterprises and removal of both sectoral obstacles and obstacles in their immediate business environment, which had constrained the development of their competitiveness. For that purpose, the Program provided advisory and financial support. Its total value amounted to EUR 13 million, of which the European Union ensured nine million, while the German Government ensured four million.

This publication showcases the results of the first lot of grant funding of up to three million euro awarded to projects of 57 small and medium enterprises, of which 19 had suffered damages in the 2014 floods. In addition, presented are projects of eight development partnerships which created networks connecting agencies for business support, academic institutions, chambers of commerce and enterprises.

The projects for which grant funds were awarded addressed obstacles for development of competitiveness both inside the enterprises and beyond, in the sectors. This facilitated enterprises to access new technologies, acquire new skills and introduce innovations, as well as to better face the challenges of integrating into global value chains and conquering international markets.

The results that have been achieved are specific and tangible, and some of them concern improvements in the business performance of enterprises, for example increases in sales and export volumes, increases in productivity and innovations, new jobs.

Through the pages that follow we will be leading you through those results, in order to show you how support provided through grant funds under the EU ProLocal program has assisted in overcoming specific problems in private sector development and in increasing the pace of economic and social development in Bosnia and Herzegovina.

Finally, we should like to commend the high level of commitment on the part of the beneficiaries to implementing the activities to which they had committed. Together, we accepted the challenge decisively and turned this into a success story.

In addition, we should like to express our gratitude to the team of colleagues from the EU ProLocal program for doing a great job, as well as to the European Union and the German Government for financing this program.

Karin HĂśrhan

Dr. Gligor Stojkov

Program Manager

Manager for Grants and Innovation

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SUMMARY RESULTS OF EUR 3,000,000 GRANT ASSISTANCE With the three million euro of grant assistance that the European Union has awarded through the EU ProLocal Program for the purpose of strengthening competitiveness of small and medium enterprises, new jobs were created, production processes were updated and modernized, and unique products were introduced into the market; the scope of production and sales has increased, shares of existing markets have expanded and new markets were conquered.

In figures, the total of 334 new workers were employed in 57 enterprises, of which 67 are women. The realized growth of revenues from sales for 2016-2018 amounts to 29%, while the growth of revenues from exports amounts to 38%.

Competitive advantage in the unforgiving market race in the local and international market was acquired by the enterprises through investing grant funds in development of 116 new products and services, but also in increasing the quality to existing products and introducing dozens of innovations. Some of the markets to which new and existing products were placed are the markets of China, Sweden, England, Algiers, Morocco. With this, the enterprises have demonstrated that, when adequately supported, they have the capacity to respond to regional and international market signals and benefit from exports.

In future, it is expected that further strengthening of innovative orientation of the enterprises will continue through the newly founded innovation network in the metal processing sector of the Banja Luka region, as well as continued networking on the regional and international level through the newly established sectoral clusters, such as the organic production cluster and the LjubuĹĄki spring potatoes cluster.

With the grant funds, 23 enterprises introduced international standards in business operations, and acquired the total of 45 certificates for products, production processes and employees, and that shall facilitate easier integration in international value chains. Continued strengthening of quality is ensured through the education programs established with the grant funds. Therefore, with the university of Zenica, the EU ProLocal Business Academy was opened, with the curriculum conceived in such a manner to assist the enterprises in preparing to penetrate external markets. The University in Mostar opened the Center for Competencies in the area of lean management, whose continuous application will ensure increases in product quality with lower operating costs.

In the future, it is expected that the innovation orientation of companies will be strengthened through newly established innovation network in the metal-processing sector in Banja Luka, as well as through further networking at regional and international level through newly-established sector clusters, such as organic cluster or the early potato cluster.

Especially interesting and significant results of the grant assistance are presented below in this publication, in the chapter Success Stories, and they are accompanied by information sheets on individual projects that include information on the objective, budget and realized results.

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SUCCESS STORIES

Growth and Development

Innovations

Continued Development After Flooding

Internationalization

Association

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GROWTH AND DEVELOPMENT

A novelty in the market of construction products and services was presented by the Armako enterprise from Prnjavor, by manufacturing 14-meter piles. That is a construction element whose use in large infrastructural projects is irreplaceable, and for which the demand is in continuous increase.

In the enterprise, they are proud that with the placement of this novelty they can participate in the construction of highways, high rise constructions and bridges in BiH, but also in the region.

“Since the placement of the 14-meter pile in the first half of September of 2017 to this day we have recorded a positive reaction in the local market to this new development in our production assortment, as well as orders from the markets of the neighboring countries, Croatia and Serbia,” emphasized Milan Blagojević, project manager of the enterprise. “This has resulted in an increase in the scope of sales by 25%.”

Presenting this novelty was facilitated by installing software to an existing production line. As it concerns manufacturing of a non-standard product in regard to its dimensions and structure, the issue of housing the production line was resolved by constructing a new hall, and the workers were trained for software management.

In 2014 the enterprise had suffered damages from flooding because of the inability to procure raw material, as well as to deliver already ordered quantities. They normalized their business operations with their own assets and preserved the jobs. Continued development of business operations implied creating conditions for introduction of new products, which was facilitated under the project.

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“A realistic direction of development for the enterprise was to expand the assortment with a product that would be complementary to the existing one – reinforced steel nets, which represent 70% of our production. We decided to manufacture piles, for which we concluded that they were in short supply in the market of BiH,” Blagojević explained.

Market Expansion The new product improved the quality of what Armako enterprise has to offer, as they can sell it to the existing buyers and gradually expand the sales network. In order to facilitate exports of the new product to Croatia and Serbia, quality certification was performed with competent institutes under the project.

“That concerns two extremely important markets for the enterprise, where we place around 50% of total production volumes”, Blagojević concluded.

The enterprise is also exporting to Montenegro and Hungary, and continued expansion will be directed toward Slovenia, i.e. the European Union market.

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INNOVATIONS

With the assistance of the grant funds through the EU ProLocal project, introduction of innovations was supported into business operations, as a significant aspect of competitiveness of the enterprises in increasingly demanding markets: from the 3D printing of wooden products and modelling of metal products, technologies for engraving furniture, production lines for manufacturing distancers for sheeting, to robotization of the welding process.

Robotization of Welding Process in BiH One of those enterprises is KOVAN M.I. enterprise from Gračanica, which, in October 2018, became the first in the country that started to use sophisticated services of robots in the welding process.

“Regardless of working in three shifts, the capacity of the welding plant was a constraint for continued growth of the enterprise, which strived to expand its business operations in the external market”, Nijaz Halidović, the general manager, emphasized.

The new technology of high-performance welding provides top quality execution and increased capacity of production for this enterprise, known for its production of heat conduction boilers and fireplaces running on pellets, which are unique in the BiH market. The work process is running without any interruptions, there is no need for additional control of the welds, and the quantity of scrap has been reduced.

In the enterprise they express satisfaction with the new quality of business operations, which are more precise, more productive and more cost effective because of the use of the robots.

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Halidović explained that the robot worked immeasurably faster compared to human work, as the robot, in average, replaced the work of eight welders, and the quality of the weld was incomparably better.

In figures, it is expected that the robotization will, by the end of business year 2019, contribute to a reduction in operating costs by 15%, a 20% increase in the local market share, and an increase in the rate of exports by 10%.

New Jobs Although the robot is operating at the speed of eight welders, that did not jeopardize any jobs. Namely, the use of the new technology in work has reduced the burden placed of the welding plant, which made it possible for the management to redistribute staff and work-related tasks to more technically demanding ones and ones in which human work still provides better results. “Quite the contrary, robotization of the welding plant created room for four additional workers, of whom two have already been employed and trained to program and manage the robot,” Halidović emphasized.

Results are also visible in the expanded palette of products. In less than six months from the introduction of the new technology, a new product was introduced into the market – a fireplace with innovative design tailored for homes with modern interior design.

“Innovations in the production process and business are, in general, necessary for enterprises that want to do business successfully and conquer new markets. We are glad to have introduced an innovation at the country level and, therefore, set the bar higher in the metal processing sector,” Halidović concluded.

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INTERNATIONALIZATION

Application of international quality standards has turned into a key precondition for enterprises to participate in many global value chains. The EU ProLocal project supported with grant funds the process of certification in various areas in 23 enterprises in Bosnia and Herzegovina. Certification has increased the quality of business processes, products and skills of the staff, to international levels, created new quality in the real sector of BiH and opened new doors for certified enterprises leading to new markets.

Services for Automotive Industry For Sur-Tec Eurosjaj enterprise from Konjic, certification in compliance with the ISO/TS 16949:2009 facilitated access to the world of automotive industry at the international level. That is the leading standard in this industry, which relates to all suppliers and service providers, independently of their size and production and other processes. “The majority of our key buyers are working for the automotive industry, wherein this exact standard is a precondition for acquiring new buyers and making new deals. The buyers require a guarantee for the quality of production, standardization of work and transparency of prices, and that is exactly what this certificate is providing,â€? Aida BadĹžak, financial manager of this enterprise from Konjic, explained.

As it is using more than 20 different technologies, this enterprise is recognized as a leader in BiH in the area of surface treatment of metals. With the new certificate, it is now in a position to respond to requirements for metal coating, which is used for protection of individual parts of vehicles.

In the several months long process towards acquiring the certificate, concluded in October of 2017, all the business and production processes of this enterprise were put under a magnifying glass, in order to ensure their compliance with the technical specification of the standard. In 2018 an improved version was issued to the enterprise.

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“This concerns more than 200 items of the standard that define how a production process should look in order for us to get the highest quality of the product,” Badžak said, and added: “The largest challenge for us was to adjust all processes, harmonize with the requirements, as well as train the people and facilitate their adaptation to the system.”

Doing Business According to International Standards Twenty-three BiH enterprises from the sector of metal processing, wood processing and agricultural business fulfilled the conditions for acquiring the total of 45 standards from various areas. In that manner, 14 enterprises acquired quality management certificates, which facilitate better business operations through increases in work efficiency and quality of products and services, as well as reductions in costs and errors in work, while ten enterprises went through the process of certification for the CE mark. The CE mark guarantees EU quality of products made from metal and metal constructions and has facilitated those enterprises to export to that attractive market.

Further on, enterprises have acquired certificates in the area of environment protection, energy efficiency and protection at work, wherein the number of injuries should decrease and productivity in work increase; as well as certificates for the quality of welding and the skills of the welders and the quality of steel for reinforcing concrete.

Through the process of professional development, nine enterprises trained certified internal auditors and quality managers.

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CONTINUED DEVELOPMENT AFTER FLOODING

EU ProLocal contributed to a positive trend of economic recovery of enterprises that had suffered damages from the flooding in 2014. For 19 of them grant funds were ensured and they brought visible results in various areas of business operations. The production process was modernized, and the product assortment expanded. Entry into new markets was performed and shares in existing markets have increased. 64 new jobs have been created.

Strengthening Competitiveness Pero Enterprise from Zenica, dealing with processing and manufacturing of finished products made from chipboards, invested the grant funds in the modernization of the center for cutting and adding borders to board material. In the enterprise they emphasize that the new technology has facilitated better quality, more diverse products, increased speed of processing of orders, with reduced delivery periods.

“The possibility of simultaneous processing of the thickest chipboards and border tapes, which the procured computerized device provides, has significantly improved the speed of processing and efficiency of the production process. In addition, we became the first ones to offer this type of services in the territory of Zenica-Doboj Canton,” emphasized the owner and general manager, Mladen Perić.

With this investment, Pero enterprise completed the process of modernization that had been temporarily interrupted by redirecting the assets into rehabilitation of damages resulting from flooding. Namely, the production plants and the sales centers of this enterprise in Zenica, Maglaj and Jajce had suffered significant damages in the floods, which led to the discontinuation of production and cancellation of orders. “Those three towns were struck by the flooding wave as much as two meters high, which damaged the infrastructure of the enterprise and totally destroyed the goods for sales and manufacturing. We had organized ourselves and with our own power we cleaned and rehabilitated the damages, and reestablished business operations within 15 days,” Perić recalls.

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Using the grant funds, the PrijedorÄ?anka enterprise marketed frozen products made from fruit, while Ekobel enterprise from LaktaĹĄi marketed products made from small cubes of dried apples. Elker enterprise from Prijedor expanded the offer with zipper clamps for household connections, and ArtLine enterprise from Derventa with arch stainless-steel fences.

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ASSOCIATION

Through its grant scheme, the EU ProLocal Programme has encouraged the association of companies and other stakeholders important for private sector development. Association enables sharing of information, experience and knowledge, access to innovation and technology, and access to resources. Thus, a cluster was established in the field of organic and integral production that linked Gračanica, Kozarska Dubica and Derventa; an innovation network was created in the metal processing sector in the region of Banja Luka; the tourist cluster of Herzegovina was strengthened through the support of the development of Blidinje and new tourist destinations; the preconditions were created for the establishment of clusters in the wood processing sector of the Zenica-Doboj Canton and the metal processing sector of the Prijedor region.

Strengthening the Ljubuški early potato cluster In order for Ljubuški early potatoes, recognisable by their quality and early maturing, to take on the market position that belongs to it due to its quality, EU ProLocal has undertaken a series of activities to strengthen the cluster of this product.

A product standardisation manual was developed, machinery was modernised, and preconditions were created for building a distribution centre.

Mobile equipment for soil analysis and modern machinery were purchased, and an agrometeorological station was installed to send information on the intensity and amount of rainfall, temperature, air and soil humidity, wind direction and speed, and leaf dampening length. This has considerably facilitated the process of planning and control of agricultural works for the members of the cluster.

“Sometimes only one degree of difference in the temperature range is a border line between whether crop damage will occur or not,” explains Dubravko Vukojević, the agricultural producer and head of the “Plodovi zemlje” Cooperative / Grains of the Land/ from Ljubuški.

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“When we get information on time about frost that can cause a great deal of damage to some crops, we can carry out preventive actions, protect crops and save significant yields. When we know beforehand the expected intensity and amount of precipitation, we know what diseases threaten herbs, and what kind and how much of pesticides to use” adds Vukojević.

Information a click away Agrometeorological station data are transmitted using the GPRS technology in digital format to the Reporting and Forecast Service (IPS) server, which is installed at the Agricultural Institute of the West Herzegovina Canton. The received data are processed by a specialised computer program, which replaced the hitherto way of working solely based on the personal experience of farmers in plant treatment and arbitrary determination of the amount of preparation.

“This reduces the adverse effect of excessive use of chemical preparations on human health and the environment and contributes to saving on their use, and it also reduces losses that can be caused by adverse weather conditions and, most importantly, it increases revenue,” says Ivica Ćutuk, who is responsible for the functioning of IPS on behalf of the Institute.

Agricultural producers are informed about the relevant agrometeorological data through the municipal radio stations, and the Institute is working on the introduction of SMS information system, which will connect not only members of the cluster but all agricultural producers, and enable that they regularly receive necessary information on their mobile devices.

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GRANT FUNDING AWARDS SCHEME Strengthening Small and Medium Enterprise Competitiveness

Measure 1 Expanded existing competitiveness of small and medium enterprises through support to introduction of innovations and use of innovative approaches.

Measure 2 Strengthened managerial capacities of municipalities for economic recovery and development on the basis of introduction of relevant instruments, localization of the Small Business Act, as well as inter-municipal cooperation as the multiplier of existing good practices.

Measure 3 Strengthened cooperation between the public and the private sectors in the implementation of measures of economic recovery and real sector development on the basis of partnerships for promotion of innovations and public-private dialogue.

Measure 4 Improved competitiveness of target sectors and strengthened business models through solving the shortcomings that constrain their development.

*The projects within Measure 2 and Measure 3 are showcased in the publication Outcomes of Grant Assistance for Business Environment (EU ProLocal, 2019).

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MORE DETAILS ABOUT PROJECTS

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IN MORE DETAIL ON PROJECTS OF SMALL AND MEDIUM ENTERPRISES On the pages that follow we shall showcase the projects of 57 small and medium enterprises for which grant funds had been awarded within Measure 1. The grant funds, amounting to between EUR 15,000 and EUR 50,000, along with the enterprises’ own funds that the enterprises had been under obligation to use to co-finance the proposed projects, were invested in modernizing the equipment, introducing new technologies in business operations, as well as in acquiring new knowledge and skills.

That has enabled these enterprises to set up, within the period of six to ten months, the foundations for strengthening competitiveness with new quality and price of products and services on emerging markets, with modern equipment and trained staff.

Specifically, production processes were updated, and unique products were introduced into the market, the scope of production and sales increased, shares in existing markets expanded, and new markets were conquered, new workers and cooperators were employed. Positive impacts are evident in three sectors in BiH – metal processing, wood processing, agricultural business – with the largest potential for development in the twenty partner municipalities.

EU ProLocal has paid special attention to projects of enterprises that had, due to the damages resulting from the catastrophic flooding in 2014, redirected their developmental assets into recovery. 19 of such enterprises were supported, and in that manner a contribution was given to the positive trend of economic recovery of areas affected by floods.

Metaloprerada

Drvoobrada 16

Agrobiznis

Metal processing

KOVAN M.I. Ltd. Gračanica

Topling Ltd. Prnjavor

Art Line Ltd. Derventa Hidraulika Flex Ltd. Laktaši Bravarija Pile Ltd. Laktaši TEM Mandeks Ltd. Široki Brijeg Elker Co. Ljubija RM LH Ltd. Zenica

FeMIS Ltd. Posušje

Braća Karić Ltd. Zenica Vendom Ltd. Laktaši Glovis Ltd. Zenica

Elcor Ltd. Grude

Euro Prost Ltd. Gračanica Bosnamontaža Co. Prijedor

Miviko Ltd. Posušje

Cromex Ltd. Prijedor

DiS Eurostandard Ltd. Prnjavor

Profile-Isolation Ltd. Žepče

Technics Program Engineering - TPM Ltd. Laktaši

Metal Ltd. za proizvodnju, promet i kooperaciju Teslić Sur Tec-Eurosjaj Ltd. Konjic

Pavković Paneli Ltd. Široki Brijeg

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Armako Ltd. Prnjavor

Zupčanik Ltd. Tešanj

Vin Metal Ltd. Žepče SIM-PROM Ltd. Derventa

INNOVATION IN BOSNIA AND HERZEGOVINA: WELDING PROCESS ROBOTIZATION

PROJECT NAME:

SPECIFIC OBJECTIVES

Welding plant modernization

• Modernizing production through automation of the welding process

IMPLEMENTED BY:

• Introducing new products and improving the

Kovan M.I. Ltd. Gračanica

quality of existing products

ACTIVITY:

BUDGET

Manufacturing heat conductive boilers and

Project value: EUR 106.260 (BAM 207.823)

fireplaces running on pellets

Grant: EUR 42.504 (BAM 83.129)

PROJECT EXECUTION: 12 mjeseci

ABOUT THE PROJECT Welding process robotization made it possible to the Koven M.I. enterprise from Gračanica to become the first enterprise in BiH that is using this unique technology. The new production process has relieved the burden placed on the welding plant, facilitating redistribution of the tasks to more technically demanding ones, and ones in which human labor still achieves better results. That has created opportunities for more modern, productive, economical and higher quality business operations.

The new technology provides a more precise and efficient welding process, and, in combination with other equipment of the enterprise it also provides opportunities for improvement of quality of existing products and development of new products.

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RESULTS Welding process robotization represents an innovation in Bosnia and Herzegovina. Fireplace with innovative design for homes with modern interior design of 10.5 kW is the first product developed thanks to new equipment.

Growth has been achieved in the volume of production and productivity, which resulted in growth of total revenues by around 3%, and of revenues from exports by around 122% in 2018 compared to 2016.

One new worker was employed.

In the coming three years growth in revenues is expected by 18% along with gorwht in exports by 8% and growth in the number of employees by 5%.

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INNOVATION IN BOSNIA AND HERZEGOVINA: NEW METAL SHEET BENDING TECHNOLOGY

PROJECT NAME:

SPECIFIC OBJECTIVES

Procurement of supply-bending press with

• Introducing new technology in the production

servo-engines

process • Accelerating production process

IMPLEMENTED BY:

• Introducing new products and redesign existing

Topling Ltd. Prnjavor

products

ACTIVITY:

BUDGET

Producer of boilers for district heating

Project value: EUR 77.600 (BAM 151.772) Grant: EUR 42.680 (BAM 83.474)

PROJECT EXECUTION: Five months

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ABOUT THE PROJECT Procurement and installation of a modern supply-bending press with servo-engines facilitated the Topling enterprise from Prnjavor to become a leader in the metal processing sector in using new technology for metal sheet bending.

This equipment contributes to optimization of production: the production process has been accelerated and power consumption has been reduced. In addition, the quality and esthetic appearance of the product have been improved, which the enterprise used to redesign existing products.

This enterprise is recognized as one of the biggest producers of boilers for renewable energy sources in Southeast Europe. Because of that optimization of production is an opportunity for entering new markets and increasing the share in existing markets in the country and abroad.

RESULTS Innovative technology of metal sheet bending has been introduced, which has initiated the process of development of new products. Presentation of fireplaces that use pellets has signified expansion of production assortment, as well as expansion to new markets, such as Algiers.

The esthetic appearance of existing products was also improved.

20 new workers were employed, and they were trained in adequate handling of equipment.

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INNOVATION IN BOSNIA AND HERZEGOVINA: DEVELOPMENT OF DISTANCER FOR COATING PROJECT NAME:

PROJECT EXECUTION:

Increasing capacities for production of distancers

Seven months

for coating SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Modernizing production equipment

FeMIS – Tvornica armaturnih

• Increasing production volumes

mreža Ltd. Posušje

• Strengthening competitiveness in the local market and in the EU market

ACTIVITY: Production of reinforcement nets and steel

BUDGET

distancers for coating

Project value: EUR 83.344 (BAM 163.004) Grant: EUR 41.672 (BAM 81.502)

ABOUT THE PROJECT With the procurement of the highly productive and more energy efficient production line for steel distancers for coating, FeMIS enterprise from Posušje set up a foundation for expanding its sales network and strengthening competitiveness in the domestic market and in the EU market. Development plans of the enterprise were focused on increasing the scope of production, which was facilitated by this project.

Upon commissioning the new, modern machine with more precise performances, the enterprise introduced an innovative process which no one else in Bosnia and Herzegovina possesses in factory production.

The newly created quality of the product is an entry ticket for new markets. Promotion directed towards strengthening recognizability of the brand in the market will contribute to that, and for that purpose the product catalog was developed and disseminated.

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RESULTS More productive and energy efficient production line was introduced for manufacturing steel distancers for coating, which represents an innovation in Bosnia and Herzegovina terms. It has facilitated growth in production volume by 300%, from 500 to 1,500 tons per annum, in parallel with a reduction in operating costs by 50%.

In 2018, compared to 2016, growth in total revenues was realized by around 49%, while revenues from imports grew by around 40%.

Four new workers were employed and trained to use the new production line.

Growth in exports is expected at 5%, along with growth in revenues and the number of employees by 3% in the coming three years.

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NOVELTY IN THE BIH MARKET: 14-METER PILES FOR HIGHWAYS

PROJECT NAME:

PROJECT EXECUTION:

Program for expanding production, market, and

Six months

energy efficiency SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Expanding production assortment

Armako Ltd. Prnjavor

• Improving energy efficiency of the enterprise

ACTIVITY:

BUDGET

Production of reinforcement nets

Project value: EUR 33.676 (BAM 65.863) Grant: EUR 16.838 (BAM 32.931)

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ABOUT THE PROJECT Upon installing software on an existing line for production of piles, Armako enterprise from Prnjavor placed a unique product in the BiH market: the 14-meter pile. The use of piles in large infrastructural projects, such as construction of highways and bridges, is irreplaceable. The issue of housing the new production line was resolved by building a new hall.

In 2014 the enterprise suffered damages resulting from flooding because of inability to procure raw materials and deliver products, and it rehabilitated those damages with its own assets. Creating the conditions necessary for introduction of new products under the project has supported continued development of this enterprise.

Under the project the neon lighting in production plants were replaced with LED lighting, which led to a significant improvement in working conditions and savings in power consumption.

RESULTS A new product was introduced: a 14-meter pile, which is a novelty in the BiH market. Under the project the new product was certified with competent institutes in Croatia and Serbia, in order to facilitate exports to those two significant markets.

Growth in revenues from exports was realized by 18%, while growth in total revenues amounted to 13.5% in 2018 compared to 2016.

In the coming three years growth of exports is expected by 30% along with growth in revenues and the number of employees by 10%.

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NOVELTY IN THE BIH MARKET: STAINLESS STEEL ARCHED FENCES

PROJECT NAME:

PROJECT EXECUTION:

Improving enterprise competitiveness by

Six months

procuring new equipment

SPECIFIC OBJECTIVES • Modernizing production equipment

IMPLEMENTED BY:

• Introducing new products and improving quality of

Art Line Ltd. Derventa

existing products • Shortening the period of completing orders

ACTIVITY:

• Increasing rate of exports to the European Union

Production of metal and stainless-steel

market

constructions

BUDGET Project value: EUR 24.738 (BAM 48.382) Grant: EUR 14.605 (BAM 28.564)

ABOUT THE PROJECT Equipment for processing metal profiles, outdated and damaged in the 2014 flooding, was replaced by the Art Line enterprise from Derventa with new and more modern equipment. The total of 12 machines with more advanced performances facilitate better positioning in the local market and entry into foreign markets, which is the focus of continued development of business operations.

Working with new equipment facilitated a very important process of integration of manufacturing of fi and square profiles on the same machine. That has accelerated the process of production and the enterprise is able to guarantee shorter delivery periods.

For the purpose of adequate promotion of the enterprise, a new marketing approach is being used – a consultant has been engaged for market presentation, a website was set up and a product catalog was developed.

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RESULTS Thanks to the new equipment, production volumes have increased while, at the same time, operating costs have decreased. Quality of processing of existing products has been improved, and development of new products has been facilitated.

The first products have already been presented to the market – arched fences and gates. A novelty in the BiH market is an arched fence made from stainless steel. Growth of revenues recorded in 2018 compared to 2016 amounts to 53%.

Four new workers were employed.

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NOVELTY IN THE BIH MARKET: STAINLESS STEEL PIPE WITH 80 FI DIAMETER

PROJECT NAME:

PROJECT EXECUTION:

Strengthening technological capacities by investing

Eight months

in new equipment, new production lines and SPECIFIC OBJECTIVES

processes

• Modernizing equipment and improving quality of IMPLEMENTED BY:

production process

Braća Karić Ltd. Zenica

• Increasing productivity and efficiency of production

ACTIVITY:

• Introducing new products and improving quality

Production of smoke conducting systems for

and appearance of existing products

households and industry

BUDGET Project value: EUR 86.399 (BAM 168.979) Grant: EUR 49.971 (BAM 97.733)

ABOUT THE PROJECT Procurement of the device for electric arc welding has facilitated to Braća Karić enterprise from Zenica to automate the process of welding the longitudinal weld on steel constructions and to introduce a new product. That concerns stainless steel pipes with 80 fi diameter, which are in high demand, and in Bosnia and Herzegovina there are no competitors.

Under the project the semi-automated line was established for changing, dragging in, measuring and cutting metal sheet in rolls in the primary manufacturing process, which has additionally improved the speed of operations and productivity in manufacturing.

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The new technology has also improved the quality of two existing processes: cutting and welding, which has a direct impact on product quality. Hard manual labor and exposure to injuries during manual handling of metal sheet rolls was replaced with easy handling of the machine, and therefore the possibility of errors in the process was reduced to the minimum possible.

RESULTS New technology has improved the production process, which has resulted in increased productivity and increased production volume.

By introducing the production of stainless-steel pipes 80 fi in diameter the enterprise presented a novelty in the BiH market and five new products – smoke conductive pipes in all lengths, smoke conducting bent pipes, T-elements, rots and sleeves. The newly created quality provided an opportunity to expand the share in existing markets and conquer new markets, such as Austria and Serbia.

Growth of revenues was realized in 2018 compared to 2016 by around 22%, while revenues from exports in this period grew by around 98%.

Seven new workers were employed.

In the coming three years growth in revenues is expected by 3%, along with growth in exports by 5% and growth in the number of employees by 10%.

29

3D-MODELLING OF ELECTRICAL CABINETS

PROJECT NAME:

PROJECT EXECUTION:

Modernization, automation and expansion of

11 months

capacities for production of electrical, command and switch cabinets and creating technological

SPECIFIC OBJECTIVES

capacities for production of cable-related products

• Reducing the period of manufacturing of electrical cabinets, from modelling to completion of

IMPLEMENTED BY:

production

• Increasing precision level of calculating costs of

Elcor Ltd. Grude

manufacturing electrical cabinets ACTIVITY:

• Strengthening competitiveness, quality and

Distribution, engineering and production in

production exporting capacities

electrical technology segment

BUDGET Project value: EUR 36.914 (BAM 72.196) Grant: EUR 22.148 (BAM 43.317)

30

ABOUT THE PROJECT Development goal of Elcor enterprise from Grude is to be the leader in efforts on introducing innovations in the area of metal products in Bosnia and Herzegovina. Under this project the enterprise procured equipment for 3D modelling of electrical cabinets, which brought it one step closer to achieving that objective.

Using 3D modelling makes it possible to adjust the design of electrical cabinetry to unique requirements of the buyers before manufacturing. The software automatically calculates and cuts the necessary quantities of cables, which significantly improves precision in the development of the model and calculation of the price. In other words, the previous manner of work – drawing, measuring, cutting and positioning components in cabinets – has been replaced with the modern 3D technology.

With the newly created quality of product the enterprise is advancing towards a new market niche in cable products.

RESULTS 3D modelling process for electrical cabinetry was introduced. It resulted in faster and higher quality manufacturing of products, along with standardized performance, and increased production volumes by 20%.

Possibility of errors in manufacturing has been eliminated.

It is expected that export rates will grow by 150%, along with revenue growth of 13% and growth in the number of employees of 25% in the coming three years.

31

3D-SPATIAL MEASUREMENT AND CONTROL OF METAL PRODUCTS

PROJECT NAME:

PROJECT EXECUTION:

Improvement of production process and

Four months

strengthening competitiveness by procuring new SPECIFIC OBJECTIVES

machinery

• Improving production process IMPLEMENTED BY:

• Expanding production assortment

Hidraulika Flex Ltd. Laktaši

• Improving quality of products and services • Increasing market share

ACTIVITY: BUDGET

Manufacturing metal products

Project value: EUR 124.995 (BAM 244.465) Grant: EUR 48.075 (BAM 94.025)

ABOUT THE PROJECT Upon procuring equipment for 3D spatial measurement of part for metal products, Hidraulika Flex enterprise from Laktaši is in a position to meet the demands of the buyers that each product it delivers is accompanied with the corresponding documented control of each step in the manufacturing process.

Measurement represents an important link in product quality control, especially for products with complex geometric forms and positions. Namely, the use of measuring devices in the business process provides a fast response to the problems that appear in measuring samples, detects potential discrepancies and provides opportunity for timely correction.

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The enterprise no longer has to reject orders because of being unable to deliver a corresponding report on measurement and control. It has eliminated the necessity of outsourcing this service, and the enterprise can independently guarantee manufacturing and delivery periods.

One step further has been taken in expanding the scope of business operations and increasing competitiveness and services of 3D spatial measurement of products made from metal were offered to the market on commercial basis.

RESULTS New operating process of 3D measurement of metal products was introduced. That affected an increase of quality of 200 existing products – metal parts – and expansion of the assortment by 57 new products made on order.

A positive reaction from the market to the newly created quality contributed to growth in revenues in 2018 by around 54% compared to 2016.

14 new workers got employed.

33

WASTE CONTAINER PLASTIC COATING

PROJECT NAME:

PROJECT EXECUTION:

Plastic coating chamber

Seven months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Vendom Ltd. Laktaši

• Optimizing business operations by procuring a plastic coating chamber • Introducing new products and services

ACTIVITY: Manufacturing metal products

BUDGET Project value: EUR 62.378 (BAM 121.998) Grant: EUR 49.902 (BAM 97.598)

34

ABOUT THE PROJECT Upon introducing the services of plastic coating of metal products, Vendom enterprise from LaktaĹĄi has rounded up its manufacturing process in its own production plant. This has, thanks to the project, supported continued developmental path of the enterprise, which has suffered great damages in the 2014 flooding. Along with the own funds of the enterprise, contribution to normalization of business activities was at the time also given by the EU Program for Recovery.

Outsourcing costs for this service are now in the past and the enterprise is able to contract on its own the time of manufacturing and deadlines for delivery.

The enterprise has also used this opportunity to expand the scope of operations and has offered new services to the market, strengthening its competitiveness in that manner, too.

RESULTS By using the chamber for plastic coating, the enterprise is now able to organize production in a faster, simpler, and more efficient manner and to expand it sales network with reduced costs and time savings.

A new product was introduced – a smartline line of plastic-coated containers for waste disposal, as well as the above ground part of the container. In 2018, compared to 2016, growth in revenues from exports has been realized by around 189%, along with growth in total revenues by around 165%.

Two new workers were employed.

Growth is expected in the rate of revenues and exports by 30% along with the growth in the number of employees by 20% in the coming three years.

35

LIFTS IN NEW COLORS

PROJECT NAME:

PROJECT EXECUTION:

Strengthening technological capacities by

Nine months

investing in a new production line SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Improving quality of final product

Euro Prost Ltd. Gračanic

• Introducing new services • Ensuring faster delivery of products

ACTIVITY: BUDGET

Project design and manufacturing of elevators

Project value: EUR 103.690 (BAM 202.800) Grant: EUR 47.894 (BAM 93.671)

ABOUT THE PROJECT Procurement of the plant for electrostatic plastic coating of metals represents a step ahead in optimizing business operations of Euro Prost enterprise from Gračanica. That has ensured replacement of 40 years old equipment which could not achieve the desired quality of the final product. The enterprise has, thanks to the automated process of plastic coating of metals, also improved the finishing phase – the quality of coloring and is able to offer to its buyers a broader selection of colors for the elevators, along with top quality of manufacturing.

This concerns an innovative project for the enterprise, which has, starting from the manual approach to preparation and coloring material, adopted a new, automated process, and rounded up its manufacturing in its own plant.

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RESULTS Upon introduction of the new automated production process for preparation and coloring of metal, the enterprise has rounded up the process of elevator project design and manufacturing in its own plant. That has accelerated the production process, which resulted in an increase of production volume. Exports were realized to the Australian market.

That has contributed to an increase of revenues from exports in 2018 compared to 2016 by around 22%, and growth in total revenues by 17.5%.

Four new workers were employed.

In the next three years growth in exports is expected by 50%, along with growth in revenues and number of employees by 20%.

37

PLASTICIZATION OF METAL PRODUCTS

PROJECT NAME:

PROJECT EXECUTION:

Procurement of automated line for electrostatic

11 months

protection of metal (plasticization) SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Increasing production volumes

Bravarija Pile Ltd. Laktaši

• Increasing export rates • Improving working conditions

ACTIVITY: Manufacturing steel constructions, construction

BUDGET

hardware, all types of fences, metal furniture

Project value: EUR 158.500 (BAM 309.994) Grant: EUR 49.595 (BAM 96.997)

38

ABOUT THE PROJECT Procurement of an automated line for electrostatic protection of metals, i.e. plasticization, facilitated Bravarija Pile enterprise from LaktaĹĄi to round up its production process within its own plant. This investment introduced innovation in the enterprise. The enterprise optimized business operations and compensated for the delay in development caused by the damages resulting from the 2014 floods, which the enterprise had rehabilitated with its own assets.

Higher quality, more precise and faster work is perfecting the process of finishing processing of metals. The work process itself is subject to increased quality control, which significantly improves the methodology, technology and quality of the final product.

In view of the fact that the buyers’ demands for plasticization of metal products are growing constantly, the enterprise decided to offer those services to the market on a commercial basis and strengthen its competitiveness in that manner, too.

RESULTS New production process of electrostatic protection of metal was introduced. That resulted in acceleration of the work process, which has a direct effect in increasing the daily capacity for processing products and the production volumes.

That contributed to growth in revenues in 2018 by around 124% compared to 2016 and growth of revenues from exports by around 127%.

Five new workers were employed.

In the coming three years growth in exports and revenues by 30% is expected along with growth in the number of employees by 10%.

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NEW QUALITY OF EQUIPMENT FOR PLAYGROUNDS

PROJECT NAME:

PROJECT EXECUTION:

Modernization and improvement of production

12 months

capacities of the enterprise SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Expanding the offer of production from the range

Glovis Ltd. Zenica

of urban furniture in own production • Introducing a set of new products adjusted to the

ACTIVITY:

needs and wishes of buyers

Manufacturing steel constructions for

• Increasing quality of products to the EU level

playgrounds, equipment, urban furniture BUDGET Project value: EUR 73,498 (BAM 143,747) Grant: EUR 37,668 (BAM 73,671)

ABOUT THE PROJECT Procurement of eight new machines for cutting and processing metal, wood, plastics and aluminum, of which four machines have CNC technology, enables Glovis enterprise from Zenica to replace old technology, which was constraining the manufacturing of new products, with modern technology. With that the enterprise is ready to use the noticed market potential in the local market, in which demand for playgrounds is growing by 10% per annum, as well as to focus on the external market.

Along with procurement of new equipment, redesign was performed of existing products for playgrounds, utility and urban furniture, and development of new products was initiated. In cooperation with accredited laboratory LIND from Zenica, special attention is paid to selecting ecologically acceptable materials and the safety aspect of the equipment, in 40

compliance with EU standards.

Thanks to the project, the enterprise directed its own assets in constructing a new manufacturing hall and warehouse premises.

RESULTS Production process for equipment for playgrounds, utility and urban furniture was improved.

11 new products were introduced – starting from slides and playgrounds for private use, to bus stations, bins and benches and other products.

Revenue growth was realized by around 18%.

Six new workers were employed.

During the period until 2021 growth of exports, revenues and number of employees is expected at 20%.

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ESTABLISHING VARNISH SHOP FOR METAL PRODUCTS

PROJECT NAME:

PROJECT EXECUTION:

Procurement of a paint and varnish plant

Eight months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Bosnamontaža Co. Prijedor

• Offering products with increased level of finishing • Expanding market share

ACTIVITY: Manufacturing and assembly of metal

BUDGET

constructions and repair of industrial plants

Project value: EUR 75.510 (BAM 147.682) Grant: EUR 37.755 (BAM 73.841)

ABOUT THE PROJECT After establishing the plant for painting and varnishing of metal products, Bosnamontaža enterprise from Prijedor rounded up the production process in its own plants. Offering a finalized product of top quality, the enterprise is now able to conquer new markets and to strengthen competitiveness and profitability.

The new production process provides optimum conditions for performing the works on painting and varnishing, such as adequate temperature and air humidity levels. The quality and period of performance of works no longer depend on weather conditions or services provided by external associates, so that the enterprise can guarantee delivery periods independently.

New conditions for work are in compliance with the requirements of safety at work and environment protection.

42

RESULTS New production process of painting and varnishing products made of metal was introduced. That affected an improvement in the process of anti-corrosive protection of metal and the quality of the final product.

The enterprise recorded exports into new markets: Algiers and Morocco.

Revenue growth was realized by around 39% in 2018 compared to 2016.

Two new workers were employed.

In the next three years it is expected that the revenue and export rates will grow by 10% along with 5% growth in the number of employees.

43

AUTOMATED PROCESS OF MATERIALS ACQUISITION AND DRYING

PROJECT NAME:

PROJECT EXECUTION:

Procurement of a central system for acquiring and

Eight months

drying materials SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Optimizing the production process

TEM Mandeks Ltd. Široki Brijeg

• Achieving optimum quality of products along with minimizing production costs

ACTIVITY: Manufacturing of electrical materials and

BUDGET

products made from plastics

Project value: EUR 131.500 (BAM 257.187) Grant: EUR 49.460 (BAM 96.733)

44

ABOUT THE PROJECT Ensuring continued growth of market shares in the EU market, to which TEM Mandeks enterprise from Ĺ iroki Brijeg is striving, necessitated optimization of the production process. That was achieved by centralizing the process of acquisition and drying of materials.

The new system of acquisition automated and facilitated transport with pipes, which minimizes dissipation of material.

Application of a flexible system for during achieves high efficiency and automated control of drying tailored to the product. That increases productivity with decreased consumption of power.

Integration of new technology into existing technology results in optimum quality of products and lower costs of production in the enterprise, whose assortment covers connection sockets, switches, switch boxes and cabinets.

Modernized process of production represents a potential for strengthening competitiveness and continued development.

RESULTS Production process was optimized by centralizing the system of acquisition and drying materials. Growth in production volumes and reduced unit price of product were realized.

The enterprise records growth in revenues in 2018 by around 8.5% compared to 2016, while revenues from exports increased by around 10.5%.

Five new workers were employed.

In the period until 2021 growth in revenues is expected at 8%, exports by 4%, and number of employees by 10%.

45

EU STANDARD CABLE INTRODUCED

PROJECT NAME:

PROJECT EXECUTION:

ncreasing competitiveness and exporting potential

14 months

by introducing new product groups SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Expanding assortment with three new types of

Miviko Ltd. Posušje

products • Realizing exports into the area of the EU and

ACTIVITY:

Switzerland, as well as in the countries of the region

Manufacturing of electrical lines and cables

BUDŽET Project value: EUR 99.727 (BAM 195.046) Grant: EUR 42.994 (BAM 84.087)

ABOUT THE PROJECT The lack of adequate equipment has been constraining the expanding of assortment of Miviko enterprise from Posušje.

Integration of additional components: pre-heaters for copper wire, self-centering heads and snail for extruder, necessary for squeezing out the mass for insulation and precise consumption of materials into the existing production line facilitated this enterprise to produce new products in series at the desired level of quality.

This concerns halogen free insulation and energy cables, which are used in industrial plants, as well as TT cables, whose application is important for households.

Those three new prototypes were certified with competent institutes in Austria and Germany, and then marketed. All are manufactured in compliance with current safety regulations on slow burning and smoke free cables.

Continued developmental goal of the enterprise is to realize exports of new production to the territory of the European

46

Union and Switzerland. For that purpose, an analysis of market potential was performed under the project and a plan was developed for gradual expansion of the market share.

RESULTS Three new types of cables were introduced into the market: halogen free and TT and they were certified in compliance with current EU regulations on safety. That has contributed to growth in revenues from exports and total revenues in 2018 by around 39% compared to 2016.

Ten new workers were employed.

In the coming three years, growth of revenues and exports is expected at 40%, along with the growth of the number of employees by 30%.

47

LATTICE SHELVES ON THE MARKET

PROJECT NAME:

PROJECT EXECUTION:

Line for welding lattice shelves

Six months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

DiS Eurostandard Ltd. Prnjavor

• Increasing productivity • Reducing risks in delivery

ACTIVITY: Metal processing, manufacturing of pipe-based

BUDGET

products and metal constructions

Project value: EUR 160.813 (BAM 314.518) Grant: EUR 44.176 (BAM 86.399)

48

ABOUT THE PROJECT Commissioning an automated line for welding lattice shelves has rounded up the production process of DiS Eurostandard enterprise from Prnjavor in its own plant. The enterprise is now able to offer to the market a finished product – a rack shelf with lattice shelves, which is applied in various market niches and for which demand is continuously growing.

Thanks to the new production line, preconditions have been created for growth in production volumes and acceptance of an increased number of orders. In addition, getting rid of dependence on external associated and outsourcing of the service has put the enterprise in the position to be able to guarantee top quality of the product and more favorable terms of delivery.

Introduction of this technology represented a strategic goal for the enterprise, both because of the broad application of the product and because of creating preconditions for continued expansion of the share in the so-called lattice program.

RESULTS An automated line was introduced for welding lattice shelves, which has replaced manual labor used thus far and rounded up the process of production of the finished product – rack shelves.

That resulted in an increase of production volume by 20%.

The realized growth in revenues from exports and in total revenues in 2018 compared to 2016 amounts to around 25%.

Six new workers were employed.

In the coming three years, growth in revenues is expected by 40%, growth in exports by 50%, and growth in the number of employees by 30%.

49

BOSNIAN AND HERZEGOVINIAN ZIPPER CLAMPS IN RETAIL

PROJECT NAME:

PROJECT EXECUTION:

Introduction of new product line – manufacturing

Eight months

of zipper clamps for household connections SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Introducing new products and improving quality

Elektrokeramičko preduzeće Elker Co. Ljubija

of existing products • Increasing production volumes • Reducing levels of scrap in production

ACTIVITY: Manufacturing of silicone insulators, fuses and

BUDGET

disconnectors

Project value: EUR 245.420 (BAM 479.992) Grant: EUR 49.595 (BAM 96.997)

ABOUT THE PROJECT Introduction of the line for manufacturing zipper clamps for household connections made from stainless steel and metal sheets represents a step ahead into the market of general consumption goods for Elker enterprise from Ljubija.

Expansion of the production assortment is the first investment in modernization of equipment in the enterprise since its recovery from floods in 2014.

New high-quality production process, along with adequate training of workers, resulted in updating of existing products, which include silicone insulators, fuses and disconnectors. Scrap in production has been minimized.

Expansion of the production assortment and improvement of quality of existing products lead towards expansion of the sales network and provide a foundation for growth in the share of existing and conquering new markets in the country and abroad.

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RESULTS Two new products were introduced: the zipper clamp for connections made from stainless steel and metal sheets for households, as a new market segment.

That contributed to an increase of the share in the local market, as well as in exports, which are recording growth in revenues in 2018 compared to 2016 of 13%.

Five new workers were employed.

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IMPROVED QUALITY OF METAL CONSTRUCTIONS

PROJECT NAME:

PROJECT EXECUTION:

EUBA Direct link

Six months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Cromex Ltd. Prijedor

• Increasing productivity • Improving cost effectiveness of doing business • Achieving price competitiveness in the market

ACTIVITY: Metal processing services

BUDGET Project value: EUR 103.267 (BAM 201.969) Grant: EUR 41.174 (BAM 80.528)

52

ABOUT THE PROJECT Upon the introduction of the new model of the bending press for bending metal sheets with the most up-to-date command software, Cromex enterprise from Prijedor resolved its problem with the bottleneck in the manufacturing of metal constructions The enterprise was able to retain the level of production volume after the 2014 floods by using its own assets, so that this optimization of the operating process is a step towards strengthening competitiveness.

The model with performances twice as strong as before has improved the speed and volume of production and the quality of finished product, with only 20% of power consumption compared to the previous model.

The possibility of manufacturing larger series, with shorter delivery periods, and of participating in demanding tenders, facilitates the enterprise to strengthen its market position. That is also contributed to by price competitiveness of the products, which was achieved thanks to increased productivity and lower costs.

The new production process also leads to updating the sales channels, which also includes the online sales platform.

RESULTS Production process for bending metal sheets has been improved and a problem of the bottleneck in manufacturing has been resolved, which resulted in an increase in production volume.

By using new technology, quality of existing products was improved, and development of new products was facilitated – pipes of various dimensions for balcony fences and parts for public toilets and mopeds. With that the enterprise advanced towards the market segment of the automotive industry – moped manufacturing.

Revenue growth was executed by around 14.5% in 2018 compared to 2016.

12 new workers were employed.

In the coming three years it is expected that exports and revenues will grow at 100%, accompanied by growth in the number of employees by 50%.

53

GROWTH IN PRODUCTION VOLUME OF INSULATION PANELS

PROJECT NAME:

PROJECT EXECUTION:

Investing in new equipment to optimize

Six months

production process SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Improving the business process and strengthen

Profile-Isolation Ltd. Žepče

existing technological capacities • Increasing the scope of production • Increasing export rates

ACTIVITY: Manufacturing insulation panels for chambers

BUDŽET

and cold storages

Project value: EUR 80.350 (BAM 157.148) Grant: EUR 46.844 (BAM 91.617)

ABOUT THE PROJECT By modernizing its production plant, Profile-Isolation enterprise from Žepče successfully eliminated obstacles for more efficient manufacturing of insulation panels for chambers and cold storages, for which it is known in the market.

Installation of the bridge crane, which covers the entire surface of the manufacturing hall and which can access to all of its parts, facilitated manipulation with large quantities of materials. That has led to acceleration in the production process and increase of its volume.

54

By using the hydraulic sheers for cutting metal sheets with CNC technology, more precise process of metal cutting in the course of preparation of the panels was achieved, and the quality of final products was improved.

Procurement of a new forklift optimized the unloading of raw materials and loading of finished products.

RESULTS Modernization of equipment has eliminated the bottleneck in the production process and growth in the production volume of insulation panels was achieved by 30%.

More precise processing of metal parts improved the quality of existing products.

Growth in revenues by 4.5% was recorded in 2018 compared to 2016.

Three new workers were employed.

It is expected that in the coming three years the revenues will grow by 30% and that exports will grow at 21%, along with growth in the number of employees by 20%.

55

ECOLOGICALLY ACCOUNTABLE BUSINESS OPERATIONS

PROJECT NAME:

PROJECT EXECUTION:

Investing in new equipment: procurement of metal

Five months

sheet bending press SPECIFIC OBJECTIVES • Optimizing the production process

IMPLEMENTED BY: RM LH Ltd. Zenica

BUDGET ACTIVITY:

Project value: EUR 114.600 (BAM 224.134)

Installation and assembly of pipelines

Grant: EUR 49.000 (BAM 95.834)

ABOUT THE PROJECT Procurement of the metal sheet bending press signified the continuation of the investment cycle for RM LH enterprise from Zenica, towards modern and innovative technology, with the objective of developing business operations and optimization of the production process. Technologies in use are in line with the enterprise’s policy of ecologically accountable business operations.

Use of the new equipment achieves incomparably better quality of processing in this enterprise, known for pipeline installation and assembly. That was used for updating its existing palette of products and initiation of the process of developing new products.

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RESULTS Thanks to the new equipment, the production process has been accelerated, and its volume increased. The quality of processing of existing products has also been improved, and the probability of errors and malfunctioning of the finished product has decreased.

Growth in revenues was executed by around 126% in 2018 compared to 2016.

Three new workers were employed and trained to use the new equipment.

In the coming three years it is expected that the revenues will grow at 50%, export will grow at 35%, and the number of employees will grow by 10%.

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COMMITMENT TO QUALITY AND EXPORT GROWTH

PROJECT NAME:

PROJECT EXECUTION:

Strengthening enterprise’s competitive position in

Eight months

exporting markets SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Producing high-quality finished products

Technics Program Engineering (TPE) Ltd. Laktaši

• Increasing production volume • Increasing export rates

ACTIVITY: BUDGET

Mechanical and CNC metal processing

Project value: EUR 25.973 (BAM 50.797) Grant: EUR 15.584 (BAM 30.479)

58

ABOUT THE PROJECT New hydraulic piles facilitated Technics Program Engineering enterprise from LaktaĹĄi to remove the bottleneck and optimize the production process of mechanical parts made from steel and aluminum for industrial plants.

The enterprise is now able to accept orders for larger series and guarantee top quality of products and shorter manufacturing and delivery periods. That has created the preconditions necessary to gradual strengthening of the competitive position in the external market, which is the developmental goal of the enterprise.

Dependence on external associates, to whom the enterprise had been forced to forward parts of orders, has been eliminated in full.

RESULTS Production process was optimized by using the new technology of hydraulic piles which facilitates simultaneous processing of several products. By applying the new equipment, production volumes were increased and processing periods by series were shortened. The newly created quality contributed to growth of revenues from exports and of total revenues by around 176% in 2018 compared to 2016.

20 new workers were employed.

59

CNC METAL TURNING PROCESS INTRODUCED

PROJECT NAME:

PROJECT EXECUTION:

Nabavka CNC-tokaralice

Nine months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Zupčanik Ltd. Tešanj

• Increasing production of metal fences • Achieving a higher degree of use of raw materials

ACTIVITY: Metal processing by scraping, grinding and

BUDGET

sanding

Project value: EUR 63.900 (BAM 124.975) Grant: EUR 35.810 (BAM 70.037)

ABOUT THE PROJECT Thanks to the turning machine, which is using the CNC technology of metal processing, Zupčanik enterprise from Tešanj is able to achieve a higher degree of finishing in its products and optimize the production process. That has signified the continuation of the process of investing in computerizing the enterprise’s equipment.

Use of the new technology has significantly improved the quality of products and accelerated the metal turning process.

It has eliminated dependence on external associates and reduced costs of outsourcing this service.

The enterprise is not in a position to accept a larger number of orders, as well as deals with shorter delivery times, and it has additionally strengthened its competitiveness and its market share.

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RESULTS Production process was optimized by using the new CNC technology for metal turning. It has accelerated the process of turning metal fences, as the main exporting product.

Two new products were introduced into the market – parts for robotics and for automotive industry.

The time needed for manufacturing process and operating costs were reduced, while the production volume increased by 20% in 2018 compared to 2016.

Five new workers were employed.

In the period leading to 2021 revenue growth is expected by 25% and export growth by 50%, along with the growth of the number of employees by 30%.

61

CNC PROCESSING CENTER FOR MORE EFFICIENT BUSINESS OPERATIONS

PROJECT NAME:

PROJECT EXECUTION:

Procurement of equipment for improving

Eight months

enterprise’s competitive market capacity SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Optimizing business operation process

Metal Ltd. za proizvodnju, promet i kooperaciju

• Increasing production assortment

Teslić

• Increasing production volume • Increasing export rates

ACTIVITY: Manufacturing heat conductive and electrical

BUDGET

boilers and mechanical constructions

Project value: EUR 83.637 (BAM 163.577) Grant: EUR 49.722 (BAM 97.246)

ABOUT THE PROJECT The procurement of the machine for CNC cutting with water stream facilitated Metal enterprise from Teslić to create the preconditions necessary for completing the investment cycle of equipment modernization.

The new, modern technology has replaced non-productive and non-functional machines whose operations had provided neither the desired quality of the finished goods nor the necessary efficiency in manufacturing.

That has created space for improving the production process, expanding the assortment and increasing production volumes, as well as conquering new markets. The enterprise no longer needs to outsource this service which had lengthened delivery times and increased production costs in the past.

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RESULTS Use of the new technology that facilitates simultaneous cutting of a number of boards has improved the production process. The enterprise is now able to accept orders for manufacturing non-standard, innovative and technologically demanding products, and to respond to the challenge of manufacturing prototypes for the automotive industry segment, which represents a step towards conquering a new market segment.

Growth in revenues from exports was executed of around 10.5%, as well as growth of total revenues by around 23%, in 2018 compared to 2016.

Two new workers were employed.

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METAL CUTTING WITH CNC PLASMA

PROJECT NAME:

PROJECT EXECUTION:

Connected diversification of activities

Four months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Vin Metal Ltd. Žepče

• Introducing new production process • Increasing production volumes • Increasing export rates

ACTIVITY: Manufacturing metal products

BUDGET Project value: EUR 29.604 (BAM 57.899) Grant: EUR 17.762 (BAM 34.738)

64

ABOUT THE PROJECT By procuring the CNC plasma device, Vin Metal enterprise from Žepče introduced a new production process for metal cutting. That has facilitated updating of at least five products with unique design, which provides an opportunity to conquer new markets and grow existing market shares.

Use of the new equipment reduces the time necessary for manufacturing of the finished product and production costs.

Costs of outsourcing the service were eliminated. The enterprise is now able to expand the scope of its business by accepting a larger number of orders and deals with shorter delivery times, guaranteeing top quality at the same time.

As this concerns a service that is unique in the Municipality of Žepče, the enterprise decided to provide it to all interested parties on commercial basis and therefore additionally strengthens its competitiveness.

Manufacturing hall was adapted in order to house the new equipment.

RESULTS More modern and efficient metal cutting process was introduced and that resulted in faster and higher-quality manufacturing of the finished product and a more competitive price.

The enterprise has, under the project, performed certification necessary to acquire a CE mark, which guarantees product quality sufficient for placement in the EU market. In 2018 revenues from exports increased by 9.5% compared to 2016.

12 new workers were employed.

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ISO CERTIFICATE FOR PENETRATION INTO AUTOMOTIVE INDUSTRY

PROJECT NAME:

PROJECT EXECUTION:

Standard integration and production

Seven months

process automation leading to better quality management, efficiency and achievement of

SPECIFIC OBJECTIVES

better business results

• Improving quality management system by introducing ISO standard

IMPLEMENTED BY:

• Optimizing production through full automation of

SurTec – Eurosjaj Ltd. Konjic

alkaline zincing process

ACTIVITY:

BUDGET

Surface treatment and galvanic protection of

Project value: EUR 71.078 (BAM 139.014)

metals

Grant: EUR 41.206 (BAM 80.590)

ABOUT THE PROJECT Certification in compliance with the ISO international quality standard, which applies to products for automotive industry, and optimization of the production process of surface processing of metals has enabled SurTec – Eurosjaj enterprise from Konjic to reach its business goals.

Upon acquiring the ISO/TS 16949:2009 certificate, the enterprise is able to expand its share int eh automotive industry segment and respond to requests for manufacturing metal coatings. The certificate provides a guarantee for quality, standardization of operations and price transparency, which the buyers are demanding.

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Certification process was supplemented by automating the alkaline zincing process for metal, which replaced the existing manual approach to operations. This concerns two equally important and mutually connected processes, which open new market niches for the enterprise.

RESULTS Certification was performed in compliance with ISO/TS 16949:2009, standard, which resulted in the enterprise penetrating the segment of automotive industry, and the process of alkaline metal zincing was automated.

Revenues from exports in 2018 increased by around 84% compared to 2016, while total revenues increased by around 40,5%.

Ten new workers were employed.

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ISO FOR SOUND AND HEAT DOOR INSULATION

PROJECT NAME:

SPECIFIC OBJECTIVES

HCP – High Competence Pavković

• Achieving product compliance with ISO 12567-1 certificate requirements

IMPLEMENTED BY:

• Increasing production volumes along with

Pavković paneli Ltd. Široki Brijeg

reductions in operating costs

ACTIVITY:

BUDGET

Manufacturing of entrance and anti-theft doors

Project value: EUR 63.332 (BAM 123.864) Grant: EUR 38.000 (BAM 74.320)

PROJECT EXECUTION: Ten months

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ABOUT THE PROJECT The process of certification in compliance with ISO 12567-1 standard for sound and heat insulation with the renowned European firm, ITF Rosenheim, confirmed compliance of business operations and products of Pavković paneli enterprise from Široki Brijeg with internationally recognized quality standards.

Manufacturing of high-quality entrance and anti-theft panels with sound and heat insulation is the focus of business operations of this enterprise, which has no competition in the local market.

The newly acquired certificate represents an entry ticket for the EU market, where the enterprise will be represented together with its business partner from Germany. Promotional activities will contribute to that. A marketing plan was developed, in addition to a catalog of the enterprise’s products and services. An online sales platform was developed with the objective of updating the sales channels.

The project also facilitated modernization of equipment. Therefore, a modern pump, providing increased capacity for technical processing of material – CNC cutting, replaced a technologically outdated pump, rendering the production process faster and more cost effective.

RESULTS Certification was performed in compliance with ISO 12567-1 for sound and heat insulation and the most modern pump for technical processing of materials was procured. The new pump is faster and more cost effective in the processing of panel products and incurs lower maintenance costs. That affected an increase in production volume and a reduction in operating costs.

Revenue growth was realized by around 18% in 2018 compared to 2016.

One new worker was employed.

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ESTABLISHMENT OF LABORATORY FOR MEASURING METAL PRODUCTS

PROJECT NAME:

SPECIFIC OBJECTIVES

Strengthening technological capacities by forming

• Increasing production volumes

a measuring laboratory

• Realizing direct exports into the EU market • Reducing scrap in production • Reducing the number of buyers’ complaints

IMPLEMENTED BY: SIM-PROM Ltd. Derventa

BUDGET ACTIVITY:

Project value: EUR 28.128 (BAM 55.012)

Metal parts manufacturing and processing

Grant: EUR 16.877 (BAM 33.008)

PROJECT EXECUTION: Five months

ABOUT THE PROJECT Establishment of a measuring laboratory has perfected the quality control process for products made from metal in SIM-PROM enterprise from Derventa. This innovation provides a direct contribution to more efficient production in the practice of the enterprise.

Thanks to the equipment with the so-called measuring hand, the enterprise is now able to measure various sizes and dimensions of products: height, depth, roughness of the material, depth of the screws etc. That facilitates noticing and removing errors before the production starts, which affects a reduction in the number of complaints and strengthens confidence amongst buyers. Outsourcing costs of these services have been eliminated, which additionally reduces production costs.

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The service of measuring metal products is available on commercial basis, too, with which the enterprise has advanced towards expanding the scope of its business operations.

The enterprise expects that this new service will ensure direct access to the European Union, in which is had so far been present only through contracted deals.

RESULTS A laboratory was established for measuring products made from metal, which has rounded up the process of product quality control in the enterprise, which was improved by 50%.

The newly created product quality contributed to growth in revenues by around 34%, as well as growth in revenues from exports, by around 123%, in 2018 compared to 2016.

Two new workers were employed.

In the coming three years growth in revenues is expected at 40%, growth in exports at 8%, along with growth in the number of employees by 20%.

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Wood processing

Javor Ltd. Prijedor

AL-EX Ltd. Zenica

Nansi Ltd. Žepče

Rukotvorine Ltd. Konjic

Gavranović Ltd. Prijedor

Pero Ltd. Zenica

Trend M&V Laktaši

Tursunprom Ltd. Gračanica Bosna Commerce Ltd. Jelah

Fantasy Unikat Ltd. Zenica Jerić Ltd. Kozarska Dubica

Obrt-Comerc Ltd. Gračanica Artisan Ltd. Tešanj

Interlignum Ltd. Teslić

Tapetarija Matić Ltd. Gradiška

Karpenteri Vitorog Ltd. Prijedor

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Oglavina Ltd. Distrikt Brčko

ENGRAVING AND CARVING OF FURNITURE USING NEW TECHNOLOGY

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Improving capacity by introducing new

Four months

technologies SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Extend the product range with at least two new

Javor Ltd. Prijedor

products • Increase sales volume • Achieve better utilisation of production capacities

ACTIVITY: Production of solid wood, laminate and

BUDGET

upholstered furniture

Project value: EUR 40.857 (BAM 79.908) Grant: EUR 24.514 (BAM 47.944)

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ABOUT THE PROJECT The company has established a production line for engraving and carving of furniture. Within the project, two panel beam saws were purchased as part of the equipment. This is why the hitherto mechanical cutting and tailoring process of the particle boards has given way to digital process.

Taking into account that customers’ demands for these unique services are constantly increasing, especially when it comes to making solid wood furniture, the company has decided to offer engraving and carving services to the market and thus strengthen the competitive advantage.

RESULTS Engraving and carving of furniture using new technology is an innovation in Bosnia and Herzegovina. The company is now in a position to meet the individual requirements of customers and offer production of more luxurious and more expensive custom-made models, with new design and desired quality. In addition, the panel beam saw contributes to better precision and quality of performance, and brings the possibility of error and complaints down to minimum.

A new product has already been introduced - kitchen sets with engraved parts, and the quality of the existing products has been improved. Three new workers are employed. Revenue growth in 2018 was achieved in relation to 2016 by approximately 66%.

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INNOVATION IN BOSNIA AND HERZEGOVINA: 3D-PRINT IN WOODWORK

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Investing in innovative technologies in line with

Eight months

European trends to increase competitiveness, increase the number of jobs, improve working

SPECIFIC OBJECTIVES

conditions and get a better position in the market

• Increase competitiveness in the European Union market

IMPLEMENTED BY:

• Expand the product range

AL-EX d.o.o. Zenica

• Increase the degree of finishing of the product • Create a basis for starting the development of

ACTIVITY:

own design of the final product

Production of solid glued wood panels

BUDGET Project value: EUR 105,677 (BAM 206,683) Grant: EUR 40,568 (BAM 79,342) 76

ABOUT THE PROJECT The AL-EX company from Zenica has introduced the innovative technology of CNC wood processing and 3D modelling and printing in the production process. Thus, the company is able to produce prefabricated wood panels, and thus laminate furniture. Improvement of the level of finishing the product has contributed to eliminating the obstacle to further business development and thus a serious step forward has been made towards expanding the sales network, especially in the EU. Thanks to the introduced 3D technology, the company has developed its own design. In addition, the company has offered the market a service of printing various panel models in just a few hours, in colours and textures of own choice.

In the framework of the project, a vacuum lifter was purchased, which serves for easy handling of the panels weighing up to 150 kg.

RESULTS By introducing a new product - prefabricated wood panels - the product range of the company has been expanded and the manufacture of custom-made laminate furniture has been made possible. The offer of commercial services has been extended to 3D design and printing. New channels of sales via the internet and retail sale have been introduced.

By 3D modelling and printing of own coupling and fitting models, the company introduced innovation in the wood processing sector in Bosnia and Herzegovina.

Six new workers are employed.

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ZANAT BRAND CONQUERS THE WORLD MARKET

PROJECT TITLE:

SPECIFIC OBJECTIVES

Zanat on the way to a recognisable and

• Market three new products and perform their

innovative brand in the world of modern designer

testing and certification for use in public spaces

furniture

• Increase business efficiency by applying IT technology to monitor the costs of labour and

IMPLEMENTED BY:

materials

Rukotvorine Ltd. Konjic

• Open at least ten new points of sale outside Bosnia and Herzegovina and increase the export rate

ACTIVITY: Making hand-carved traditional furniture and

BUDGET

wood accessories

Project value: EUR 113.149 (BAM 221.296) Grant: EUR 46.097 (BAM 90.156)

PROJECT IMPLEMENTATION: Ten months

ABOUT THE PROJECT Having purchased a new turning machine, the Rukotvorine company from Konjic has introduced modern CNC wood processing technology with the intention of strengthening the position of the Zanat brand in the world of unique designer furniture. Under the Zanat brand, furniture and accessories for minimalist design are marketed. Ten-fold faster turning technology has made it possible to innovate existing and develop new products.

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Within the project, the company presented the Zanat brand at the fairs in Cologne, Stockholm and Milan, and has established cooperation with 15 new salons in Germany, France, Switzerland, Portugal, Hong Kong, Belgium and China.

A YouTube channel has also been launched to promote the products through short videos.

For the purpose of quality business, a new business software program for monitoring the costs of labour and materials was introduced into practice.

RESULTS The product turning process has been enhanced, resulting in the development of six new products: touch side table, touch table and chair, and in the improvement of the quality of existing ones.

The process of systematic production planning by applying new software solutions has been introduced, which contributes to the efficiency of business.

In 2018, compared to 2016, revenues increased by approximately 132%, while export revenues increased by approximately 180%.

There are 12 new employees, whereof five are women.

In the next three years, export growth is expected to increase by 320%, revenues by 300% with a 100% increase in the number of employees.

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STARTING THE PRODUCTION OF DESIGNER FURNITURE

PROJECT TITLE:

SPECIFIC OBJECTIVES

Improving the furniture manufacturing process

• Optimise the production process by combining

by applying a combined drilling and milling

the drilling and milling operation

technology

• Extend the range of products by introducing designer furniture

IMPLEMENTED BY:

• Improve the quality of the drilling process and the

Reflex Ltd. Gradiška

contour processing of laminate furniture • Reduce the occurrence of rejects during the

ACTIVITY:

drilling and milling operation

Manufacture of laminate furniture

• Increase the rate of exports to the EU market

PROJECT IMPLEMENTATION:

BUDGET

Six months

Project value: EUR 67.388 (BAM 131.797) Grant: EUR 36.390 (BAM 71.171)

ABOUT THE PROJECT Having purchased a vertical CNC processing centre, the Reflex company from Gradiška joined two key operations in the production of furniture - drilling and contour milling. This has eliminated the bottleneck in the production process, the production process has significantly reduced, and the volume has increased. The company is in a position to respond to more complex customer requirements, and guarantee a shorter delivery period.

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In addition to innovating existing products from the segment of laminate furniture, the combination of these two operations has made it possible to step forward into the segment of designer furniture.

Quality, reliability, affordable prices and a wide range of products are competitive advantages of the company, which will further strengthen with the use of new technology.

RESULTS The production process was optimised, which was a development goal of the company.

Three new products were presented to the market, which responded positively to the innovation of their design and quality of production. These are beds, chests and bread boxes. Innovated are also existing products: kitchen and bathroom furniture, closets, sliding wardrobes and furniture for children’s rooms.

There are 14 new employees, whereof seven are women.

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THROUGH NEW DESIGN OF LAMINATE FURNITURE TO THE EU MARKET

PROJECT TITLE:

SPECIFIC OBJECTIVES

mproving technological capacities by investing in

• Improve the process of finishing products made

new wood processing machines

of laminate materials • Reduce production costs

IMPLEMENTED BY:

• Achieve a higher degree of utilisation of raw

Oglavina Ltd. Brčko distrikt

materials

ACTIVITY:

BUDGET

Production of upholstered, laminate and solid

Project value: EUR 49.799 (BAM 97.396)

wood furniture

Grant: EUR 29.880 (BAM 58.439)

PROJECT IMPLEMENTATION: Four months

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ABOUT THE PROJECT The procurement of a modern automated unilateral edge banding machine has resulted in replacing the obsolete technology and ensuring continuous production of panels of various shapes.

By doing so, the Oglavina company from BrÄ?ko has managed to improve the quality and design of laminate furniture and meet the specific requirements of customers.

New equipment contributes to the acceleration of the production process, which affects the reduction of production and electricity costs, and the company can also guarantee shorter delivery times.

RESULTS The new line of custom-made products and significantly improved quality of finishing of existing products have opened the door to new markets and increased their share in the existing ones. Thus, the products of modern design are already available in the sales network of 11 showrooms throughout Bosnia and Herzegovina and neighbouring Montenegro.

There are 7 new employees.

The results of this project provide the basis for continuing the company’s development ambitions by investing in new equipment, further growth in production and expansion of the sales network. In the next three years, it is anticipated to achieve revenue growth by 20%, export growth by 15% and increase in the number of employees by 10%.

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THROUGH PROCURING NEW CNC MACHINE TO NEW PRODUCT LINE

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Procurement of CNC machine

Six months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Nansi Ltd. Žepče

• Modernise production • Expand the product range

ACTIVITY:

• Improve the quality of the processing of existing

Manufacture of furniture parts from beech

products

and fir/spruce BUDGET Project value: EUR 107.747 (BAM 210.731) Grant: EUR 40.000 (BAM 78.232)

ABOUT THE PROJECT Procurement of a new CNC wood processing machine marked the official start of investment in optimising the production process of the Nansi company from Žepče. This is the first investment in the modernisation of equipment, which was significantly damaged during the 2014 floods, when the company managed to maintain the level of production with its own funds.

The performance of new, modern, computer numerical control machines, which guarantee advanced wood processing, has a positive effect on the quality of the existing and gradual introduction of new products.

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RESULTS Four new types of beds of innovative design and quality production were presented on the market. In addition, the quality of the production of existing products has been improved. The volume of production has also been increased, and the price of the product has been adjusted to the new quality. The increased volume of production and the expanded product range have laid the basis for placement on new markets, as well as for expanding the share on existing ones.

Six new workers are employed.

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A STEP TOWARDS FURNISHING HOTELS

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Introduction of modern technologies in the

Six months

manufacture of hotel furniture SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Expand production capacities by improving

Gavranović Ltd. Prijedor

existing ones and introducing a new production line • Increase the competitiveness of the company on the market and improve business

ACTIVITY: Manufacture of laminate and upholstered

BUDGET

furniture

Project value: EUR 100.004 (BAM 195.587) Grant: EUR 42.054 (BAM 82.249)

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ABOUT THE PROJECT The Gavranović company from Prijedor acquired the computerised CNC equipment for edge banding and laser finishing of wood thus rounding up the existing production line and expanding the production capacity. Due to considerably better performance, the new equipment has improved the quality of the production of existing products, especially the edge processing of laminate materials. Previously the weakest link in production now offers the so-called invisible joint and permanent quality. The product range has also been expanded.

The company has made available new equipment to the Mechanical School in Prijedor for the training of woodworking technicians.

RESULTS The product range has been expanded in the segment of laminate furniture with three new products: bed headers, wardrobe and chest of drawers for hotel rooms. This was a serious step forward of the company in this market niche.

Large-sized furniture production also provided an offer for equipping public institutions, so the contract on the equipping of the Centre for Social Welfare in Germany was signed in the framework of the project.

Expansion of product range resulted in an increase in export revenues by 1000% and a rise in total revenues by 150% in 2018 compared to 2016.

Ten new workers are employed.

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MODERNISATION OF PRODUCTION REMOVED BOTTLENECK

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Modernisation of production capacities in

Five months

furniture production SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Improve productivity

Fantasy Unikat Ltd. Zenica

• Increase production volume

ACTIVITY:

BUDGET

Manufacture of stylish, upholstered, laminate and

Project value: EUR 30.678 (BAM 60.000)

solid wood furniture

Grant: EUR 17.895 (BAM 34.999)

ABOUT THE PROJECT By commissioning modern equipment for the process of rip sawing and edge banding wooden panels with CNC technology the Fantasy Unikat company from Zenica managed to eliminate bottlenecks in the preparatory stage of manufacture, which is the basis for further business development.

These are two preparatory operations in the process of making furniture, whose quality and speed largely contribute to the quality of the entire production. New equipment reduces the possibility of errors to a minimum, thereby eliminating potential complaints.

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The company is now in a position to manufacture the existing products in a fast and quality manner, and create new products, with reduced production costs and short delivery times.

All this significantly affects the increase of the competitive position of this company, which is known for its unique design of furniture with engraving technique and is exhibited in showrooms throughout Bosnia and Herzegovina.

RESULTS The bottleneck was removed in the process of rip sawing and edge banding of wooden panels, which was crucial for increasing the efficiency of the entire production process.

The custom-made product range has been expanded, and models with engraving on different sizes of panels were presented on the market. Two new workers are employed. The export revenue increased by approximately 14% in 2018 compared to 2016.

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PARTICLE BOARD CUTTING AND EDGE BANDING CENTRE OPENED

PROJECT TITLE:

SPECIFIC OBJECTIVES

Modernisation of the cutting and edge banding

• Modernise the production process

centre

• Make a direct impact on the development of the wood processing industry in central Bosnia, offering

IMPLEMENTED BY:

cutting-edge processing of particle boards in the

Pero Ltd. Zenica

shortest period since the order

ACTIVITY:

BUDGET

Processing and production of finished products

Project value: EUR 64.683 (BAM 126.507)

from particle boards

Grant: EUR 50.000 (BAM 97.790)

PROJECT IMPLEMENTATION: Eight months

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ABOUT THE PROJECT By establishing a centre for cutting and edge banding of laminate material with a modern, computer-controlled machine, the Pero company from Zenica has improved the quality and speed of processing of particle boards. The modernisation of equipment was a necessary development step, especially after the recovery from the 2014 floods. The damage was recovered by the own funds of the company.

The direct warming of particle boards with an infrared lamp in the process of preparation for edge banding contributes to production efficiency. This replaced the previous process, which required heating of the entire space and high electricity consumption.

The company offered the service of highest quality processing of particle boards in the shortest possible time to the existing sales network, which is gradually expanding.

RESULTS By automating the cutting and edge banding process, the processing speed and efficiency of the production process have significantly improved. The possibility of simultaneous processing of the thickest particle boards and edge banding strips has ensured shorter delivery time.

The product range expanded in the segment of laminate material and a better quality of the final product was achieved.

Four new workers are employed.

As a result of faster production tailored to customer requirements, revenue growth of approximately 15% was recorded in 2018 compared to 2016.

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INCREASE OF WOOD BRIQUETTES PRODUCTION

PROJECT TITLE:

SPECIFIC OBJECTIVES

Purchase of equipment for primary wood

• Increase the volume of wood briquette production

processing and lamellas for multi-layer parquet

• Market new innovative products • Educate workers about log processing and

IMPLEMENTED BY:

efficient production of parquet elements for optimal

Trend M&V Laktaši

use of resources and energy • Increase the level of quality control and

ACTIVITY:

production efficiency, with fewer intermediate

Production of oak industrial parquet

operations in the production of parquet

PROJECT IMPLEMENTATION:

BUDGET

Five months

Project value: EUR 78.151 (BAM 152.847) Grant: EUR 46.891 (BAM 91.709)

ABOUT THE PROJECT The new line for the processing of logs, purchased under this project, provides Trend M&V from Laktaši with the possibility of using non-standard size logs, which ensures continuous supply of raw materials with better control of its quality.

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The company can now replace 60% of the raw material with its own. This reduces dependence on suppliers and generates significant savings. In addition, thanks to the new equipment, the company can respond to the increased demand for oak parquet, and it has also expanded the product range in the segment of flooring.

The own log processing resulted in a larger quantity of sawdust, which Trend M&V used to produce larger quantities of wood briquettes. This is an example of how low-quality raw materials can become a high-quality product.

In the framework of the project, employees were trained in accordance with the ISO 9001: 2015 quality standard.

RESULTS The production process was upgraded, the production volume increased by 5% and the delivery time was reduced by seven days. The company has developed a new product - oak lamellas for multilayer parquet. It is a very popular product on the market, which enables the company to expand its sales network.

Four new workers are employed and an additional five female subcontractors are hired for the process of packaging the parquet. They joined the existing network of 16 female workers.

Total revenue growth was approximately 13% in 2018 compared to 2016.

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FROM WASTE TO A NEW PRODUCT

PROJECT TITLE:

PROJECT IMPLEMENTATION:

New equipment for a new product

Five months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Jerić Ltd. Kozarska Dubica

• Improve business by increasing production volume while reducing costs

ACTIVITY:

• Expand the range of products

Manufacture of wooden pellets

• Improve energy efficiency BUDGET Project value: EUR 30.422 (BAM 59.499) Grant: EUR 15.211 (BAM 29.749)

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ABOUT THE PROJECT With the help of a modern horizontal log band saw, the Jerić company from Kozarska Dubica modernised the production process and increased the volume of pellet production. Instead of the previous processing of logs with a diameter of 65 cm, the new horizontal log band saw can handle logs of 90 cm. This has eliminated the costs of outsourcing of this service and significantly reduced the cost of production. Pellet produced by the Jerić company is harmonised with EU phytosanitary standards, which is confirmed by the IPPC certificate.

By treating logs in its own plant, the company saw the opportunity to use its own waste as a raw material, so it also acquired a new machine for the production of firewood. Demand for this product is constantly increasing, especially in the European Union market, which will be used by the company for the implementation of export ambitions.

RESULTS With the acquisition of horizontal log band saw, the volume of pellet production increased by 30%, while the purchase of a machine producing firewood ensured that this new product intended for export be officially marketed. One new worker is employed.

In 2018, compared to 2016, the export revenue of the company increased by approximately 158%, and total revenues by 23%.

In the next three years, revenue is expected to increase by 30% with an increase in exports by 90%.

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PRODUCTION OF WOOD PANELS DOUBLED

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Procurement of a line for the longitudinal joining

Six months

of wood SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Improve capacity for the production of glued

Tursunprom Ltd. Gračanica

panels and elements • Increase production volume • Increase the export rate

ACTIVITY: Processing of soft and hard wood

BUDGET Project value: EUR 61.355 (BAM 119.998) Grant: EUR 36.813 (BAM 71.998)

ABOUT THE PROJECT By installing a new line for the longitudinal joining of logs, the Tursunprom company from Gračanica doubled the production volume of glued panels, whose demand in the market is constantly increasing. The quality of the glued panels of this company, ranging from 30 cm to 5 m in length for the production of solid wood furniture, as well as panels for building formwork, is especially recognised on the European Union market.

Increased production capacity has resulted in a decrease in product prices and a faster delivery time. The company can now not only service the existing customers but also react equally well to new orders and acquire new customers.

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RESULTS The production capacity of glued panels has increased by 100%, the final product’s quality improved and the delivery time shortened. Placement was expanded to the markets of France, Austria, Italy, Croatia and Kosovo, and exports revenue increased by 49.5% in 2018 compared to 2016, and the total revenue increased by approximately 54%.

There are 13 new female workers who are engaged in jobs traditionally performed by men.

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NEW MACHINE - BETTER PRODUCTION CAPACITY, BETTER QUALITY

PROJECT TITLE:

SPECIFIC OBJECTIVES

Procurement of a machine for removing knots or

• Increase production capacity per hour

other irregularities or for filling-up holes

• Increase the utilisation of timber • Reduce production costs • Offer a better and more affordable product

IMPLEMENTED BY: Obrt-Comerc Ltd. Gračanica

BUDGET ACTIVITY:

Project value: EUR 74.997 (BAM 146.679)

Wood processing

Grant: EUR 49.498 (BAM 96.808)

PROJECT IMPLEMENTATION: Five months

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ABOUT THE PROJECT The Obrt Comerc company from GraÄ?anica has purchased a new machine for removing knots or other irregularities or for filling-up holes in timber. This machine, where the production process begins, had to be replaced with a new one to adequately respond to rising demand. The production capacity per hour of this export-oriented company is increased, and it can now process 10,000 kilometres of timber per shift with a higher utilisation of the raw material.

The investment also helped overcome the losses caused by the 2014 floods, which caused damage to facilities and equipment. Modern technology of the new machine for removing knots or other irregularities or for filling-up holes delivers the desired quality and speed. This has eliminated the costs of repairing the old model, whose failure often stopped the production process and required additional staff engagement.

RESULTS The new model of the machine for removing knots or other irregularities or for filling-up holes increased the volume of production per hour by 50%, and at the company level by 10%. The company can now offer a better and more affordable final product with a shorter delivery time.

83 jobs are preserved.

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IMPROVING ENERGY EFFICIENCY

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Purchase of energy efficient woodworking

Five months

machines SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Increase production capacity

Interlignum Ltd. Teslić

• Reduce electricity consumption • Reduce waste costs when cutting timber

ACTIVITY: BUDGET

Manufacture of kitchen furniture

Project value: EUR 66.199 (BAM 129.472) Grant: EUR 50.000 (BAM 97.790)

ABOUT THE PROJECT With the purchase of CNC numerical centre for wood processing, the Interlignum company from Teslić started the process of replacing equipment, large consumers of electricity, with new, energy efficient equipment. This continued the process of modernisation in the company, initiated by the installation of ventilation systems for dust extraction, after a recovery from the 2014 floods, in which the equipment of the company was significantly damaged.

The use of new equipment allows parallel processing of multiple panels and precise cutting of different geometric shapes.

By offering of the equipment for the CNC operator training, the company has become an active participant in the retraining of the labour force in the municipality of Teslić.

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RESULTS The result of working with new equipment is a more efficient and more precise cutting process of several panels at the same time. This resulted in increased productivity, utilisation per panel, and the volume of production. The computerised process minimizes the possibility of error, and maximizes the quality of production.

A new product has been presented to the market - a table top of different shapes. Also, the quality of the production of existing products has been improved. The export revenues increased in 2018 compared to 2016, and total revenues increased by approximately 12%.

Four new workers are employed.

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THERMAL WOOD TREATMENT INTRODUCED

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Procurement of new log band saw and wood

Six months

drying kiln SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Increase the slot-cutting of timber

Bosna Commerce Ltd. Jelah

• Increase the degree of finishing of the product • Increase the utilisation of raw materials

ACTIVITY: Processing and sale of finished and semi-finished

BUDGET

wood products

Project value: EUR 100.200 (BAM 195.971) Grant: EUR 45.591 (BAM 89.166)

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ABOUT THE PROJECT Equipping the new saw-mill facility and wood drying kiln allowed the Bosna Commerce company from Jelah to improve the finishing process and product quality.

With the new log band saw of improved performance, the capacity of slot-cutting increased by 200% and log processing has been accelerated, with the full utilisation of the raw material.

Owing to the new process now used for wood drying - thermal wood treatment, product quality has been improved and long product life-cycle ensured. The products are lighter, which significantly affects transport costs.

RESULTS The use of new equipment has improved three business processes - cutting and thermal treatment of wood and waste management. This has created the possibility of expanding the product range for several classes of market-attractive products.

The new product has already been introduced to the market: a pellet that opened the door to new market segments such as construction companies and eco-heating plants.

Four new workers are employed.

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CNC TECHNOLOGY IN THE DESIGN OF UNIQUE FURNITURE

PROJECT TITLE:

SPECIFIC OBJECTIVES

Purchase of a five-axis CNC machine

• Optimise the production of the company’s bestselling products

IMPLEMENTED BY:

• Increase production volume

Artisan Ltd. Tešanj

• Shorten delivery time • Reduce manufacture rejects

ACTIVITY: BUDGET

Manual furniture manufacture

Project value: EUR 193.001 (BAM 377.471) Grant: EUR 50.000 (BAM 97.790)

PROJECT IMPLEMENTATION: Six months

ABOUT THE PROJECT The five-axis CNC machine enabled the Artisan company from Tešanj to optimise production and expand the range of products of high quality furniture of unique design, whose manufacture requires a combination of CNC technology and manual work.

The manufacture of bestselling product – chairs – has also been optimised, which resulted in several manufactured pieces, more precise processing, faster assembly and short delivery time.

Access to new markets, primarily the USA, Canada and Mexico, is also guaranteed, and sales growth in China is expected, where four monobrand stores currently operate.

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The new equipment will also improve the training process at the ARTECO Technology Centre, opened by the Artisan company in 2009 to give interested parties the opportunity to acquire skills in the field of design and wood processing.

RESULTS Owing to the newly introduced technology, the ideas of world renowned designers have been translated into 11 new unique products. These are tables and side tables, barstools and shelves of different sizes and designs.

A step forward was made to a new market in China, while export revenues increased by approximately 77%.

The manufacture of the bestselling product - Neva chair - increased from 2,500 to 4,000 pieces a year. Revenue increased by approximately 63% in 2018 compared to 2016.

18 new workers are employed.

In the next three years, revenue and export are expected to grow by 90%, with an increase of 45% regarding number of employees.

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LEAN MANAGEMENT IN THE PRACTICE OF WOOD PROCESSING

PROJECT TITLE:

SPECIFIC OBJECTIVES

Increasing company’s competitiveness

• Remove the bottlenecks in the process of cutting and sewing of sawmilling products

IMPLEMENTED BY:

• Introduce new products and increase the

production volume of existing ones

Tapetarija Matić Ltd. Gradiška

• Develop a methodology for calculating the ACTIVITY:

production price of products

Manufacture of upholstered furniture

• Identify and eliminate passive activities and reduce costs by using lean management tools

PROJECT IMPLEMENTATION: BUDŽET

Seven months

Project value: EUR 54,655 (BAM 106,894) Grant: EUR 31,278 (BAM 61,173)

ABOUT THE PROJECT The new organisational approach and equipment modernisation were marked as priorities for further development of the Tapetarija Matić company from Gradiška, and they were implemented through this project.

In order to adequately respond to the need for defining the planning, management and control of the process, as well as the challenges in setting deadlines, a certification process was carried out in accordance with the ISO 9001-2015 quality standard.

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In practice, the application of lean management - the 5S model of organisation and visual control of workspace, which will soon include all workplaces – is in place. The contribution of this model is reflected in a better organised workspace, longer lifetime of equipment and a reduction in several types of costs.

In order to optimise production, the worn out equipment has been replaced by new one. Three new sewing machines, a thickness calibration machine and a wood panel saw were purchased.

RESULTS In the business process, the company introduced the ISO 9001-2015 quality management standard and lean management tools.

Owing to the new equipment, existing products have been innovated and 15 new products have been presented different models of sofas, corner sets and bedroom furniture.

18 new workers are employed.

Revenue in 2018 increased by approximately 56% compared to 2016.

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ISO 9001:2015 FOR NEW BUSINESS QUALITY

PROJECT TITLE:

SPECIFIC OBJECTIVES

Improving the production process and

• Perform certification in accordance with the

certification according to ISO 9001:2015

international quality standard ISO 9001: 2015 and thus:

IMPLEMENTED BY:

• Define a system for the development of a new

Karpenteri Vitorog Ltd. Prijedor

product and process • Develop a quality control system for the product

ACTIVITY:

and process

Manufacture of chairs made of solid beech wood

• Define the way of managing the production process

PROJECT IMPLEMENTATION:

• Create a system for calculating the product cost

Eight months

and monitoring the performance effects • Carry out the training of necessary personnel BUDGET Project value: EUR 74.325 (BAM 145.364) Grant: EUR 43.109 (BAM 84.312)

ABOUT THE PROJECT In the Karpenteri company from Prijedor, in which the entire process of manufacture, from logs to the final product, is carried out in one place, certification was done in accordance with the international quality standard ISO 9001: 2015.

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The certification enabled the company to improve its business model by eliminating technological, professional and organisational barriers, which had previously limited further development. Thus, among other things, systems for the development of new products and processes, quality control, product price calculation, monitoring of the performance effects and training of workers have been defined.

In the framework of the project, the four-sided planer was replaced with a new one. The new machine enhanced the base processing of the elements, providing the necessary precision when it comes to dimension and shape. Thereby, the company is in a position to innovate and develop new products, in accordance with market requirements.

RESULTS The international certificate ISO 9001:2015 has introduced new quality into the business process and resulted in improved productivity and production volume.

With the purchase of a new four-sided planer, the quality of manufacturing of all kinds of chairs has been improved, and the number of complaints has been reduced, and a new product has been placed on the market: HEDA chair. Revenue increased by approximately 51% in 2018 compared to 2016, while export revenue increased by approximately 50%. The company started exporting to Spain.

Two new workers are employed.

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Agro-business

Zemljoradnička zadruga Brka Brčko

Prijedorčanka a.d. Prijedor

Mabog Gumanović d.o.o. Grude

Eko-Bel d.o.o. Laktaši

Maočanka Commerce d.o.o. Brčko

Šumski plod d.o.o. Prozor-Rama

Poljoprivrednik d.o.o. Derventa

Euroinvest d.o.o. Brčko

Jelena d.o.o. Kozarska Dubica

Sjemenarna d.o.o. Široki Brijeg

Bojka d.o.o. Ljubuški

Eko - Bosanska Posavina d.o.o. Derventa

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THE COOP BRAND WINS THE MARKET OF HEALTHY SNACKS

PROJECT TITLE:

SPECIFIC OBJECTIVES

Fruit and vegetables drying plant

• Create new ranges of products for domestic and foreign markets

IMPLEMENTED BY:

• Register the brand for product marketing

Agricultural Cooperative Brka, Brčko District

• Introduce the HACCP standard • Increase the number of employees

ACTIVITY:

• Buy market surpluses of fruits, vegetables and

Proizvodnja, otkup, prerada i plasman mlijeka,

forest fruits

voća, povrća i žitarica BUDGET PROJECT IMPLEMENTATION:

Project value: EUR 70.753 (BAM 138.378)

Six months

Grant: EUR 50.000 (BAM 97.790)

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ABOUT THE PROJECT Having purchased a new modern ecological plant for drying, processing and packing fruit and vegetables, the Cooperative Brka from BrÄ?ko District has complemented the equipment for rehydration of dried fruit. This has completed the investment that began in 2014, which was discontinued as a result of the diversion of funds for the purpose of flood recovery. By commissioning this plant, the Cooperative has introduced a new line of fruit products, marketed under the newly-created brand COOP. Particular attention is paid to branding and promoting a new product line, whose development can be followed through the web site http://coop.ba.

The Cooperative applies Greenlink technology, which provides consumer with information on traceability of products from farm to fork.

RESULTS In 2018, 16 new products were presented for the local market, including pitted prunes in two different packaging sizes, plum compote and the so-called healthy apple and pear snacks. Two new products for the foreign market were launched – dried plums and tomatoes. There are ongoing preparations for 30 new products.

Purchase of fruit has increased by 45%, while a network of 1,300 subcontractors has been preserved.

The HACCP quality standard and the quality management system ISO 9001: 2015 were introduced.

Four new workers were employed.

In the next three years, export and income are expected to grow by 20%, with a 100% increase in the number of employees.

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PURCHASE OF VEGETABLES FROM ONE HUNDRED SUB-CONTRACTORS ENSURED

PROJECT TITLE:

SPECIFIC OBJECTIVES

Purchase and processing of vegetables from the

• Continue the investment cycle stopped by flood

Sava Garden region ensured and competitiveness

damage and reduced liquidity

improved

• Improve the competitiveness of the company by increasing the utilisation of existing capacities

IMPLEMENTED BY:

• Connect, improve and develop value chains in

Prijedorčanka a.d. Prijedor

the Sava Garden region

ACTIVITY:

BUDGET

Processing of fruit, vegetable and forest fruit

Project value: EUR 66.590 (BAM 130.236) Grant: EUR 49.183 (BAM 96.192)

PROJECT IMPLEMENTATION: Eight months

ABOUT THE PROJECT By introducing a new modern production line for chopping vegetables, the Prijedorčanka company from Prijedor launched two new products on the market. In accordance with market requirements, packages of frozen chopped pumpkins and peppers are offered. This will complement a range of products that includes fruit juices and distillates, dried fruits and vegetables. The project has enabled the repair of existing machines for cold processing and the purchase of an electric forklift.

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This investment is a continuation of a development project suspended after the floods in 2014, when resources were diverted to recover damaged infrastructure and equipment.

The company operates in accordance with ISO 1901, HACCP and Koscher standards.

RESULTS By launching two new products: frozen chopped pumpkins and peppers, the company is in a position to guarantee buying of pumpkins and peppers from one hundred small producers - subcontractors in the Sava Garden region, which includes Prijedor, GradiĹĄka, Kozara Dubica, Novi Grad and Srbac. The new products were placed on the Scandinavian market. In 2018, compared to 2016, export revenues increased by approximately 49%, and the total revenue by approximately 57%.

Three new workers were employed, and the new production line provides jobs for additional 30 seasonal workers.

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DRIED APPLE CUBES ON THE EU MARKET

PROJECT TITLE:

SPECIFIC OBJECTIVES

Extending the production portfolio of dry fruits and

• Introduce three new products

vegetables

• Implement International Food Standard in business

IMPLEMENTED BY:

• Increase export rates, primarily in the European

EKO-Bel Ltd. Laktaši

Union Member States

ACTIVITY:

BUDGET

Purchase and processing of fruits and vegetables,

Project value: EUR 73.662 (BAM 144.068)

spices and medicinal herbs, forest fruits and

Grant: EUR 49.821 (BAM 97.439)

mushrooms PROJECT IMPLEMENTATION: Osam mjeseci

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ABOUT THE PROJECT EKO-Bel from LaktaĹĄi has acquired a new production line for processing. Owing to that, the company can produce an innovative line of dried fruit and vegetables products, smaller and in the form of cubes, for which the market interest was signalled. This investment helped overcome the losses caused by the floods in 2014, whose recovery was supported by the EU Floods Recovery Programme.

With the new equipment, which includes a printer and a machine for automatic welding of packaging, the company is in a position to offer a variety of packaging formats and to independently print the packaging.

RESULTS Small cubes of dried apples, as well as products made from dried carrots, celery and sweet potatoes were presented on the market. The new products are unique in the BiH market and are sold under the existing brand Sava Garden. The basis for the move into a new market segment for the marketing of small-sized fruit for muesli was created.

The products are exported to the EU market. In 2018, compared to 2016, export revenue growth was around 103%.

The company has been certified for the International Food Standard, which opens the door to the world’s largest retail chains.

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MAXIMUM UTILISATION OF FRUIT YIELD

PROJECT TITLE:

SPECIFIC OBJECTIVES

Production line for juices

• Introduce a new production line and present new products

IMPLEMENTED BY:

• Increase production volume

Mabog Gumanović Ltd. Grude

• Improve the level of utilisation of own raw materials and raw materials from suppliers

ACTIVITY: BUDGET

Production of fruit juices

Project value: EUR 47.867 (BAM 93.618) Grant: EUR 27.850 (BAM 54.469)

PROJECT IMPLEMENTATION: Eight months

ABOUT THE PROJECT The Mabog Gumanović company is the only producer of natural juices in the West Herzegovina Canton and Canton 10. Owing to the new juice production line, the company introduced new apple juice packaging.

The packaging of 0.2 litres and family packs of three and five litres made it possible to extend the sales network to catering facilities and retail chains.

Listening to the customers’ wishes, the next step is to extend the supply by wild rose hip juice for which the region of Herzegovina is famous.

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RESULTS The new production line eliminated the problem of using second-class fruit and resulted in 100% utilisation of the orchard yield of the company as well as of the subcontractors. The volume of production has increased by 300% and production has increased from 30,000 to 90,000 litres per year. The production process is cheaper, and the quality of the juice is the same.

The placing of juice in packaging of 0.2 in the HOREKA market segment also contributed to the expansion of market share.

Three new workers were employed.

The growth in revenues was about 23% in 2018 compared to 2016.

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GROWTH OF FRUIT DISTILLATE PRODUCTION

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Improving competitiveness in fruit processing

11 months

IMPLEMENTED BY:

SPECIFIC OBJECTIVES

Maočanka Commerce Ltd. Maoča,

• Strengthen the technological capacities of the

Brčko distrikt

company by investing in new equipment • Increase awareness of the importance of applying international quality standards to agriculture

ACTIVITY: Purchase and processing of fruits, aromatic herbs

BUDGET

and forest fruits

Project value: EUR 154.539 (BAM 302.248) Grant: EUR 47.459 (BAM 92.820)

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ABOUT THE PROJECT The installation of two new 1,500 kg distillers enabled the MaoÄ?anka company from MaoÄ?a to increase production capacity, thus meeting the growing demand for fruit distillates.

This investment helped overcome the financial losses caused by the 2014 floods, when reduced purchasing volumes led to a decline in production.

New equipment facilitates monitoring of manufacturing process, deadlock recording, sampling for quality control, as well as intervention. The result is a product of the desired quality and purity, which is important considering the role of distillate in the medical, cosmetic and food industry.

Business operation in line with GlobalGap and IFS certificates also contributes to quality, thus guaranteeing a high standard of product quality, and protection of environment and people.

RESULTS Thanks to the new equipment, fruit distillate production volume increased by 40%, while buying of raw material increased by 20%.

Efficiency of the production process has improved by 200%.

Two new workers are employed, and the number of seasonal workers has increased from ten to 30.

In the next three years, it is expected to achieve the increase in export and income rates at an equal rate of 50% with 20% growth in employment.

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CAPACITY OF THE COLD STORAGE DOUBLED

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Increasing the capacity and quantity of products by

Eight months

expanding refrigeration capacity SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Increase the company’s competitiveness by

Šumski plod Ltd. Prozor-Rama

expanding its refrigerator capacity • Ensure the purchase of quality raw materials and improve product quality

ACTIVITY: Growing, buying and processing of strawberries

BUDGET

and berries, mushrooms and medicinal herbs

Total project value: EUR 83.872 (BAM 149.572,65) Grant: EUR 37.742 (BAM 67.307,69)

ABOUT THE PROJECT Having built the new plant for storage and freezing of fruits, the Šumski plod company from Prozor-Rama has increased its refrigeration capacity by 100%, in other words from 500 to 1,000 tons. Therefore, this company met one of the key elements of proper handling of fruit, namely adequate storage and freezing of fruit after harvest. Thus, the company is able to guarantee the highest quality of products, but also to increase its competitiveness, because the products reach a better market price and are available all year round.

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The products are predominantly marketed in the foreign markets, which is contributed by HACCP and ISO 9001-2008 certificates, whose food safety and quality standards are met by the company.

The foundation for the new phase of the company’s strategic development was also laid, namely the processing of agricultural products.

RESULTS The implementation of this project has doubled the company’s refrigerator capacity for storage from 500 to 1,000 tons, which meets the needs for storing raw materials from 600 to 800 subcontractors.

Six new workers are employed.

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ESTABLISHMENT OF A QUALITY CONTROL LABORATORY OF CEREALS

PROJECT TITLE:

SPECIFIC OBJECTIVES

Quality control of cereals

• Optimise business operations by introducing modern methods of quality control of cereals

IMPLEMENTED BY:

according to EU standards

Poljoprivrednik Ltd. Derventa

• Improve competitiveness by increasing the quality and scope of operations in purchasing processes, preparation for storing and storage processes

ACTIVITY: Growing, buying and storing cereals and oilseeds

BUDGET PROJECT IMPLEMENTATION:

Project value: EUR 77.327 (BAM 151.236)

Eight months

Grant: EUR 46.396 (BAM 90.741)

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ABOUT THE PROJECT The installation of laboratory equipment enabled the Poljoprivrednik company from Derventa to have a permanent insight into the quality of the cereals they produce, buy or sell. This has considerably improved the quality of work, while the possibility of error has been reduced to the lowest possible and acceptable level.

Laboratory equipment provides timely, accurate and reliable information on the quality and chemical properties of cereals within two to three minutes. This reduces the risk of buying products of poor quality and their deterioration in the process of preparation and storage and the risk of financial losses. The possibility was achieved for better market positioning and competitive growth.

The new and modern way of controlling cereals has created working conditions in line with EU standards, which are only at the beginning in this field in Bosnia and Herzegovina.

This is the first investment in the company’s business development after the 2014 floods recovery, with its own funds and funds from the Government of the Republika Srpska.

RESULTS The possibility of continuous monitoring of the quality of cereals that the company produces, purchases or sells has been achieved. First-class product quality has been improved by 20% and production process is more efficient by 25%.

Given that, thanks to the project, the company received the status of a laboratory from the competent RS Ministry of Agriculture, it is in a position to analyse grain quality of wheat for other companies and issue certificates for export to Italy, where they place their assortment.

Revenue growth was achieved by approximately 14% in 2018 compared to 2016.

Two new workers are employed.

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GREATER GRAIN YIELD WITH NEW TRACTOR

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Improvement of the process of growing non-

Six months

perennial cereals by buying a new tractor SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Increase competitiveness by increasing crop yields

Euroinvest Ltd. Brčko distrikt

and better grain quality • Improve the speed and quality of land treatment

ACTIVITY: BUDGET

Growing of pigs, cereals, legumes and oilseeds

Project value: EUR 156.967 (BAM 306.996) Grant: EUR 49.516 (BAM 96.843)

ABOUT THE PROJECT With the new industrial tractor, the Euroinvest company from BrČko has considerably improved the quality of land treatment and the process of planning the sowing period, which directly reflects on the quality of the cereals.

This investment was necessary for the modernisation of cereal crops, which suffered enormously during the 2014 floods, and for further business development in this area.

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The new mechanisation ensures a more efficient soil treatment process, which increases the volume and quality of yield and diversification of production. Approximately 62 ha of land are cultivated, which is tending to increase.

Anticipated yield growth of one thousand tons would give the company a starting point to start exports. Taking into account the technology used to produce GMO-free cereals, storage and drying in accordance with international standards, Turkey has been designated as the most promising market.

RESULTS The use of new mechanisation contributed to the growth in volume and the yield quality of up to 50%. This enabled the company to reduce the cost of the product and to guarantee faster delivery times.

Revenue growth was achieved by approximately 153% in 2018 compared to 2016.

Within the project, a professional tractor driver joined the team of workers.

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CEREALS FROM OWN PRODUCTION

Project title:

PROJECT IMPLEMENTATION:

Improvement of the technological process for the

Six months

production of seeds for cereals SPECIFIC OBJECTIVE IMPLEMENTED BY:

• Increase the competitiveness of the company

Jelena Ltd. Kozarska Dubica

through the procurement of technological equipment for receiving and storing cereal seeds

ACTIVITY:

for the purpose of the process of finishing seed

Production, drying, storing and buying cereals

material of high-yielding and quality varieties BUDGET Project value: EUR 211,918 (BAM 414,469) Grant: EUR 48,537 (BAM 94,928)

ABOUT THE PROJECT “Everything from own production” is a new marketing approach by the Jelena company from Kozarska Dubica, which has expanded its storage capacity by 3,000 tons. This has rounded up the existing production process in the company, which includes sowing, harvesting, drying, storing, finishing and processing.

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The extended silo capacity solved the problem of storing different seed types and reducing the risk of mixing grains of different varieties, affecting the quality of the final product. That is why sub-contractors can now rely on the complete quality of the finishing process: separating impurities, weight separation, counting and packaging.

The company plans to utilise the expansion of production capacities as an opportunity to develop its own production, in other words to introduce new varieties of seeds, thus creating the basis for the performance of export ambitions in 2019.

This project is an important step towards increasing the company’s competitiveness, especially after recovering from damage to crops caused by 2014 floods.

RESULTS Having increased the silo capacity by 3,000 tons, the company has rounded up the production process in its own plant, and introduced a new service: production and processing of soybean seed.

Three new workers are employed, and ten are trained for working on new equipment. The network of 350 subcontractors has been enlarged by 30 new ones, educated on modern ways of producing cereals.

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NEW PACKAGING SIZES OF PROPAGATION MATERIAL AS AN INNOVATION IN BOSNIA AND HERZEGOVINA

PROJECT TITLE:

SPECIFIC OBJECTIVES

Increasing competitiveness by innovating the last

• Expand the product offer

phase of the business process - packaging

• Achieve price competitiveness • Facilitate the planning of bulky seeds and

IMPLEMENTED BY:

propagating material

Sjemenarna Ltd. Široki Brijeg

• Facilitate expanding on existing and positioning in new markets

ACTIVITY: Distributor of seeds, propagating material and

BUDGET

plant protection products

Project value: EUR 109.584 (BAM 214.324) Grant: EUR 49.268 (BAM 96.358)

PROJECT IMPLEMENTATION: Ten months

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ABOUT THE PROJECT Having equipped the packing and processing centre with an automated filling and packing line, the company is in a position to independently pack the seeds and propagating material in the small-size packaging. The new production process replaced the handmade process applied so far, which was performed with improvised tools and outdated machine, thus enabling the expansion of the product range and their more competitive price.

By self-recovering from the financial loss after the 2014 floods, which prevented the payment collection and new orders, the company was able, thanks to the project, to round up the business process in its own facility. the process of packaging innovations in Bosnia and Herzegovina RESULTS The process of small-size packing of seeds and propagating material with the help of new technology represents innovation in Bosnia and Herzegovina. In this way, the company introduced new packaging for five products of own Green Garden brand.

Growth of export revenue of about 74% was achieved in 2018 compared to 2016, and in 2019 the company plans to position on two new markets: Serbia and Montenegro.

Eight new workers are employed, of which five women.

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MEDICINAL HERBS FOR SALE

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Improving competitiveness by investing in new

Six months

mechanisation SPECIFIC OBJECTIVES IMPLEMENTED BY:

• Increase the volume of seedlings production

Bojka Ltd. Ljubuški

• Increase revenues • Increase the number of workers

ACTIVITY: Production and growing of seedlings of flowers,

BUDGET

vegetables and perennial medicinal herbs

Total project value: EUR 49.999 (BAM 97.788) Grant: EUR 29.504 (BAM 57.703)

ABOUT THE PROJECT The purchase of automatic sowing and dusting lines enabled the Bojka company from Ljubuški to market larger quantities of high-quality propagating material of flowers and vegetables at an optimum price, and to expand plantations of medicinal herbs. Thus, the use of obsolete machinery, which limited the quality of soil treatment and productivity, has become history.

The new sowing line guarantees adequate soil treatment and optimal seed distribution, which are the basic preconditions for quality growing of seedling. With the new dusting machine, the company is in a position to accurately dispense ecopreparations, which promote healthy growth and development of plants.

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RESULTS With the new equipment, the Bojka company has expanded the existing processing areas with three types of medicinal herbs and marketed the propagating material for this crop. The company anticipates a positive effect of the new production line on the growth of plantations of flowers, vegetables and herbs, from the current 1.5 to 1.8 million a year.

The products are sold through their own agricultural centre in LjubuĹĄki.

Six new employees are employed.

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DEVELOPMENT OF PLANNED GROWING OF HAZELNUTS

PROJECT TITLE:

PROJECT IMPLEMENTATION:

Optimisation of business operations in the

Four months

production of hazelnuts by purchasing equipment SPECIFIC OBJECTIVES

for fruit production

• Optimise business operations by strengthening IMPLEMENTED BY:

technological capacity in the production of

EKO – Bosanska Posavina Ltd. Derventa

hazelnuts • Improve the speed, efficiency and quality of plant

ACTIVITY:

protection against diseases

Crop production and cereal and oilseed production

• Improve the speed and quality of land treatment BUDGET Project value: EUR 92.959 (BAM 181.809) Grant: EUR 49.036 (BAM 95.904)

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ABOUT THE PROJECT By acquiring a specialised tractor and atomizer (orchards sprayer), the company has obtained modern equipment for quality processing and growing of hazelnuts.

An orchard tractor passes through the plantations without damaging the trees and is more suitable for the terrain with higher elevation. Sprayer is irreplaceable when it comes to speed, efficiency and quality of plant protection against diseases.

This project represents a further step for business development, especially in retail, investment in peeling and packaging of hazelnuts.

SPECIFIC OBJECTIVES The use of the new machinery resulted in the acceleration of the production process and the improvement of yield quality. Savings have been achieved in the picking process thanks to special suction accessories on the new tractor.

After the first harvest, revenue growth was achieved by 27%.

Two new workers are employed.

In the next three years, it is anticipated to achieve revenue growth by 20% and to double the number of employees.

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IN MORE DETAIL ON DEVELOPMENT PARTNERSHIPS PROJECTS On the pages that follow we shall be presenting the results of eight projects for development partnerships for which grant funds were awarded under Measure 4. Those projects, in the duration of between 12 and 18 months, covered 36 small and medium enterprises and four agricultural cooperatives, under the leadership of agencies for business support and university institutions. They invested the grant funds under the Program, amounting to between EUR 55,000 and EUR 100,000 and their own funds in activities directed towards removing the constraints to strengthening value chains in selected sectors (wood processing, metal processing, agricultural business and tourism sector in the following municipalities: Grude, Jablanica, Konjic, LjubuĹĄki, PosuĹĄje, Prozor-Rama, Ĺ iroki Brijeg).

Results were achieved in numerous areas. They include networking, promotion in the market of Bosnia and Herzegovina and the external market, labor force development and measures of support to business development in general.

Specifically, sector clusters were established, and business models were prepared for strengthening their market position. Processes, workers and products were certified in compliance with various international standards for quality management, such as ISO, GLOBALG.A.P., HACCP. New business support services were created, focusing on the aspect of internationalizing business operations and exports. There is a multitude of good practice examples that can be and should be disseminated further.

In order to preserve and improve the progress achieved, a framework has been established for cooperation of diverse stakeholders: entrepreneurs, representatives of the governments and the public sector overall, development agencies and the academic community. In that manner, a foundation was set up for a joint coordinated approach in resolving the issues that are a burden on private sector development in future.

Metaloprerada

Drvoobrada 137

Agrobiznis

NEW INCENTIVE FOR DEVELOPMENT OF ORGANIC PRODUCTION IN BIH

PROJECT NAME:

OBJECTIVES:

Domestica – innovative business model

• Increasing the level of knowledge and practical skills from the area of organic and integrated

SECTOR:

production of fruit and vegetables through

:

establishing informal adult education

Agro-business

• Improving cooperation of developmental and LOCATION:

educational centers through networking and

Derventa, Gračanica, Kozarska Dubica i Laktaši

creating clusters • Increasing the number of persons interested in

IMPLEMENTED BY:

production according to integrated and organic

Center for Economic and Rural Development –

production and increasing demand for those

CERD

products amongst the consumers • Increasing the volume of products that are sold

PARTNERS:

under the existing Domestica brand and increasing

• Agricultural Cooperative Gračanka, Gračanica

revenues and the number of jobs with project

• Agricultural Cooperative Agroposavina Farm,

partners

Derventa • Fruit Production Agricultural Cooperative Dubičko

BUDGET

Potkozarje, Kozarska Dubica

Project value: EUR 119.674 (BAM 234.062) Grant: EUR 95.643 (BAM 187.061) PROJECT EXECUTION: 15 months 138

ABOUT THE PROJECT With the objective of development of the sector of organic production, project activities have provided an efficient response to the challenges faced by this sector, specifically: the lack of adequate education, networking, and promotion.

System of informal adult education has been established for the occupations of organic / integrated fruit and vegetable producer, and that system will be implemented through the newly established development centers, adequately equipped and with trained staff.

The centers are connected into a cluster with the objective of continued promotion of the organic approach to production and improvement of conditions for doing business within the sector.

Placement and promotion of products have been organized under the existing brand Domestica, the first brand of certified organic production of fruit and vegetables in BiH.

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RESULTS Based on many years of experience in the area of

contribute to development of sector competitiveness,

cultivation of fruit and vegetables, CERD developed two

such as scientific and research institutions, public

unique modules for informal adult education in BiH for

administrations, cooperants.

the occupations of organic / integrated fruit or vegetable

Promotion of individual producers from the cluster and the

producer. Education, which comprises theoretical and

placement of their products is being performed through

practical part, is now at disposal to all interested parties.

the existing market-based marketing concept Domestica.

Educational services are at disposal in the developmental

It achieves standardization of operations, quality and

and education centers that were established under the

controlled origin. It is defined who produces what, in what

project at the level of cooperatives – project partners in

quantities, how, and when. That creates the necessary

GraÄ?anica, Kozarska Dubica and Derventa.

preconditions for stable growth of production and sale

For the purpose of the especially important practical part

in a market ensured in advance and a joint coordinated

of the education, plastic greenhouses were installed in the

approach to new markets.

centers, of 500 m2, organic plantation of fruits and a fruit

Implementation and strict control of application of the

sorting line.

principles of organic production introduces a totally

The first 30 cooperative members were successfully trained

new production process, which will result in a set of new

in compliance with the new modules, which has also

products and ten new jobs in 2019.

created the staff related conditions for fulfillment of this

The first joint product within the framework of this concept

task.

was placed and recorded a positive response in the

Networking of the centers and the CERD has officially

market. It is a basket of organically growth and freshly

established a cluster for organic production.

picked vegetables Domestica, which is delivered straight to

It is expected that, in time, new producers will join the

the consumer’s door.

cluster, as well as all the relevant stakeholders that can

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EARLY SPRING POTATOES FROM LJUBUŠKI ADVANCING TOWARDS EUROPEAN TABLES

PROJECT NAME:

OBJECTIVES:

Small and medium enterprises in the value chain for

• Standardizing early spring potatoes from Ljubuški

early spring potatoes from Ljubuški

as a product through cooperation with research institutions

SECTOR:

• Ensuring continued development of the value

:

chain through preparation of business models for

Agro-business

the production cluster LOCATION:

• Improving capacities and managerial skills of

Ljubuški

enterprises in the value chain of the early spring potatoes from Ljubuški through various trainings

IMPLEMENTED BY Development Agency of West-Herzegovina

BUDGET

Canton − HERAG

Project value: EUR 80.684 (BAM 157.804) Grant: EUR 64.323 (BAM 125.804,85)

PARTNERS: • Agricultural Cooperative Plodovi zemlje (Fruits of

PROJECT EXECUTION:

the Land) Ljubuški

12 months

• Rosić Ltd. Ljubuški • I.B. Borna Ltd. Ljubuški

141

ABOUT THE PROJECT Project activities address the issues of standardization of quality and insufficiently developed system for collection, warehousing and distribution, as key obstacles for the development of the value chain of early spring potatoes from LjubuĹĄki.

With the objective of continuous improvement of product quality and the production process, cooperation has been established with research institutions. In connection with that, portable equipment was procured for soil analysis as well as modern machinery, and reporting and forecasting services have been established. Business model concept has been developed, including a marketing strategy.

The project facilitated the development of the concept and main project design for the planned establishment of the distribution center at the level of the municipality.

142

RESULTS A manual for product standardization has been

Efforts are also being continuously investing in promoting

developed and it defines the manner and the technology

additional networking of producers into a cluster.

of production, the standard for quality, packaging and

During the project, the number of members of the

labeling. Responsibility for application of the manual in

cluster increased from 150 to 200, which increased the

practice and extension services to producers in preparation

production volume from 6,000 to 9,000 tons. Therein

for the standardization was taken over by the Institute for

the cluster covered 90% of total production of potatoes

Agriculture of the West-Herzegovinian Canton.

in LjubuĹĄki, which resulted in an increase of the number

The Institute is also in charge of the functioning of the

of employees in production from 300 to 500. The rate

reporting and forecasting services. For that purpose, an

of exports in the 2017/2018 season increased by 66%

agricultural and meteorological station was installed,

compared to preceding season.

and that has facilitated the collection, processing and

Additional contribution to strengthening business

presentation of meteorological data, and the establishment

operations of the cluster will be provided by the

of the SMS-based information system for farmers is

establishment of the distribution center. The project

ongoing.

facilitates the development of the concept and main

A new business model was prepared for the development

project design of the center, and the land for construction

of the value chain. It has, inter alia, established a new

was awarded by the Municipality of LjubuĹĄki in the locality

manner of management of the cooperative, which is

of Business Zone of Zvirići. The next step is to ensure

currently acting as a cluster of individual producers with

financial assets for constructing the center, for which the

professional management. That approach strengthens

Cooperative plans to turn to various donors.

competitiveness, but also the position of the cluster

In order for the enterprises in this value chain to be in a

in negotiations on sales and the manner of product

position to respond to new business challenges, HERAG

distribution.

has organized training from the areas of management, marketing and branding.

143

ESTABLISHMENT OF CENTER FOR LEAN MANAGEMENT

PROJECT NAME:

OBJECTIVES

Increasing competitiveness of enterprises in the

• Increasing competitiveness of enterprises from

metal processing sector through implementation

the metal processing sector in the municipalities of

of lean tools and establishment of Center for Lean

Široki Brijeg and Posušje

Management

• Reducing organizational costs • Ensuring sustainability of knowledge and

SECTOR:

competencies realized under the project

:

Metal processing BUDGET LOCATION:

Total project value: EUR 99.691,25

Široki Brijeg i Posušje

(BAM 194.979,14) Grant: EUR 79.753 (BAM 155.983,31)

IMPLEMENTED BY: University School of Mechanical Engineering and

PROJECT EXECUTION:

Information Technology, University in Mosta

15 months

PARTNERS: • FEAL Ltd. Široki Brijeg • Miviko Ltd. Posušje • TEM Mandeks Ltd. Široki Brijeg • TT Kabeli Ltd. Široki Brijeg • WELTPLAST Ltd. Posušje

144

ABOUT THE PROJECT The project has ensured the introduction of expert-based and systematized support to enterprises in the area of lean management. The application of lean tools in doing business is an irreplaceable element in strengthening competitiveness of enterprises in modern market conditions, and their continuous application means increased product quality with lower costs of doing business.

Project activities covered the establishment and equipping the Center for Competencies in the Area of Lean Management with the University in Mostar, as well as the development of curricula. Distance learning model was also introduced.

The process of introduction of lean tools in partner enterprises was supported, and it had been preceded by professional training of staff in seminars and individual training sessions.

145

RESULTS In order to ensure a long-term solution for the issue

lecturers, who, upon completing the training, initiated

of adequate education on numerous advantages of

the process of transferring the acquired knowledge to

application of lean tools in the business process, the

their colleagues and the process of introduction of lean

Center for Competencies in the Area of Lean Management

tools into the enterprises. Study visits to enterprises in

with the University in Mostar was stablished. Under the

Germany and Croatia, which were organized under

project specialized computer and network equipment

the project, facilitated an insight into the application of

was procured, as well as literature for educational needs.

those tools in actual conditions of operations and useful

Guidelines for development of curricula and operations of

experiences, which they can also apply in their professional

the Center were, in general provided by colleagues from

environments.

the PTW Institute Freiburg from Germany, as hosts of the

In the course of the project the process was finalized for

study visit of the University School staff.

introduction of three lean tools in partner enterprises: 5S,

The website was also initiated at www.leancentar.fsr.

Kaizen and OEE – productivity of manufacturing.

sve-mo.ba, and it provides an insight into the concept

Experiences in application of lean tools show that

of education, as well as the e-learning portal, which

operating costs decrease very fast, stock get reduced, the

facilitates distance learning.

time of production, service provision and product delivery

The Center will be at the disposal to students who, in

shorten, all of which has a positive effect on motivation of

various classes, study contents from the area of lean tools,

workers and satisfaction of buyers.

as well as to enterprises on commercial basis.

By certifying their staff in the area of lean management,

In parallel with working on the establishment of the Center,

enterprises created the preconditions necessary to offer the

the Staff of the University School also implemented a

services of training to other enterprises and, in such way,

specialized program of education for representatives of

expand the application of lean tools within and beyond the

five partner enterprises. That resulted in ten certified

metal processing sector and multiply project results.

146

ESTABLISHMENT OF EU PROLOCAL BUSINESS ACADEMY

PROJECT NAME: Competitive Business Based Export and Training

• Artisan Ltd. Tešanj

Service Center – COBETS

• Kalim Ltd. Tešanj • Prograd Ltd. Žepče

SECTOR:

: OBJECTIVES

Wood processing

• Providing incentives for a favorable business LOCATION:

environment through the establishment of the EU

Zenica, Gračanica, Žepče i Tešanj

ProLocal Business Academy • Increasing the level of competitiveness of export-

IMPLEMENTED BY:

oriented enterprises in Zenica-Doboj Catnon

University School of Economics, University in Zenica

• Increasing the number of employees in enterprises, of which 30% should be women, at the minimum

PARTNERS: • Inter-com Ltd. Zenica • Prima Commerce Ltd. Zenica

BUDGET

• KS-Promet Ltd. Zenica

Project value: EUR 106.672 (BAM 208.632,30)

• Halidex Ltd. Gračanica

Grant: EUR 85.338 (BAM 166.906,62)

• Obrt Comerc Ltd. Gračanica PROJECT EXECUTION: 15 months

147

ABOUT THE PROJECT Project activities addressed three priority areas in strengthening competitiveness of the wood processing sector of Zenica-Doboj Canton in the external market: education, adequate preparation for presentation, and promotion in external markets.

EU ProLocal Business Academy was established with a program that assist enterprises is responding to market circumstances and challenges in a higher quality manner. In order to realize long-term impact of the project on the quality of future labor force, an agreement was signed on cooperation of educational institutions, developmental agencies and chambers of commerce.

Within the project preconditions were created for establishing clusters in the wood processing sector and its vertical networking with the metal processing sector, with the objective of information exchange and promotion.

RESULTS The establishment of the EU ProLocal Business Academy with the University in Zenica reflect the concept of a specialized program of education for senior and mid-level management. With 30 selected thematic units, such as business financing, the legal aspect of exports, marketing and branding, this program provides an opportunity to the entrants to improve key knowledge and skills in preparing enterprises to access external markets and adequately promote their potential.

148

During the project lifetime, the Academy was attended

entrepreneurs in general. This concerns an innovative

by 30 persons, of which eight women. 17 seminars were

manner of presenting on a broad spectrum of economic

realized, including training for business agents, which were

topics in a single location.

attended by representatives of eight enterprises, project

The publication “How to Do Business with the EU” was

partners and chambers of commerce.

also prepared for the wood processing sector, and it offers

In order to realize long-term impact of the project on in

a wealth of useful information and guidelines.

quality of future labor force, an agreement was signed

Kalim profil enterprise from Tešanj was certified in

on cooperation of the University School of Economics in

accordance with the ISO 9001:2015 standard, Obrt

Zenica, professional schools, the Development Agency of

Comerc enterprise from Gračanica received a new

the Municipality of Tešanj and chambers of commerce of

server, and prototypes of products were developed for

the Zenica-Doboj Canton and the Federation of BiH.

Artisan enterprise from Tešanj: two designs for cabinets,

Within the Academy, a “Niche for Wood Processors”

worktable and wall shelves. Partner enterprises were given

was also opened, as a unique and original mode of

an opportunity to present their work at the Furniture Fair

support whose objective is to provide a broad spectrum

Ambienta in Zagreb in 2018.

of consulting services, as well as assistance in establishing

17 new workers have been employed, of 30 envisaged

contacts and business networking with foreign partners.

in 2019. In the same period, growth of sales in those two

The web portal BusinessPedia (Biznispedia) was also

sectors of up to 2% is envisaged, along with growth in

initiated, a portal with an advisory format, for

exports of up to 3%, and growth of the share in the local market of up to 10%.

149

WORLD OF QUALITY – CERTIFICATION OF SYSTEMS, PRODUCTS AND WORKERS

PROJECT NAME: Implementation of European Standards in

• Ćosićpromex Ltd. Usora

Enterprises from Metal Processing Sector in BiH

• AL-M Ltd. Derventa • ACMA-Group Ltd. Bosanska Krupa

SECTOR:

• Procesna oprema inženjering Ltd. Laktaši

:

Metal processing OBJECTIVES: LOCATION:

• Improving business processes

Derventa, Prijedor, Prnjavor, Laktaši, Žepče, Teslić,

• Increasing the level of knowledge of employees

Gračanica, Bosanska Krupa i Usora

• Acquainting employees of partner enterprises with the demands of the market in regard to standards

IMPLEMENTED BY:

and directives of the European Union

TUV Adria d.o.o. Sarajevo

• Implementing European standards and directives

PARTNERS:

BUDGET

• Bosnamontaža Co. Prijedor

Project value: EUR 77.420 (BAM 151.420,36)

• Monting&Co Ltd. Teslić

Grant: EUR 51.876 (BAM 101.460,64)

• Krupa kabine Ltd. Bosanska Krupa • Kovan M.I. Ltd. Gračanica

PROJECT EXECUTION:

• CROMONT Ltd. Žepče

12 months

150

ABOUT THE PROJECT Under the project, the process of international certification of systems, products and workers was successfully implemented in various areas of business operations of nine enterprises from the metal processing sector from both entities of BiH. Application of international quality standards in operations is an important link in the chain for strengthening competitiveness of the enterprises and an entry ticket for presentation in new markets.

Project activities have put under a magnifying glass all the business and production processes in enterprises and they were harmonized with criteria for certification. Activities of meeting quality standards are accompanied by adequate professional development of staff in charge of tasks of internal audit and quality management.

151

RESULTS Achieving international quality standards is a confirmation

In the area of staff certification, the following results were

of an enterprise’s commitment to continuous progress,

achieved:

principled approach to business and client satisfaction.

• nine auditors,

Nine enterprises confirmed that in the course of the

• nine quality managers,

project.

• nine representatives of management for quality.

In the area of system management certification, the

Thanks to the certification, which has increased the quality

following results were achieved:

of business processes, products and skills of the staff of

• ISO 9001 – quality management system was introduced

partner enterprises to the level required by the EU, exports

in eight enterprises;

have been achieved to the market of the European Union

• ISO 14001 – environment protection system was

– from Slovenia, Italy, Austria and Germany, to Sweden

introduced in four enterprises;

and Denmark.

• ISO 50001 – energy efficiency system was introduced in

In 2019 it is expected that at least 15 new products will be

one enterprise;

developed, and the quality will be improved of 50 existing

• BS OHSAS 1800 – protection at work system was

products. According to assessments, it will result in 50

introduced in one enterprise.

jobs, growth in sales and exports by 10% and expansion of

In the area of certification of industrial processes, the

the share in the local market by 5%.

following results were achieved:

The project has also facilitated business networking

• EN 1080/CE mark for products, which guarantees

of enterprises which will, in future, through exchange

exports into EU, was acquired by seven enterprises;

of experiences and complementing each other in the

• ISO 3834 – quality system for welding was introduced in

assortment of services, additionally strengthen the sector’

five enterprises;

competitiveness.

• PED – system for quality and skills of the staff for welding was introduced in three enterprises.

152

METAL PROCESSING IN FOCUS: STRENGTHENING COMPETITIVENESS

PROJECT NAME: Networking local metal processing for application

• CROMEX Ltd. Prijedor

of new technologies and strengthening

• Polis Ltd. Prijedor

competitiveness OBJECTIVES SECTOR:

• Ensuring more efficient application of new ICT

:

technologies and cluster-based organization of

Metal processing

metal processing in the territory of the City of Prijedor

LOCATION: Prijedor

BUDGET IMPLEMENTED BY:

Project value: EUR 93.204,27

City of Prijedor Economic Development Agency

(BAM 182.288,92)

(PREDA)

Grant: EUR 74.097,39 (BAM 144.919,69)

PARTNERS:

PROJECT EXECUTION:

• Livnica Co. Ljubija

15 months

153

ABOUT THE PROJECT Application of new information technologies in doing business and more intensive networking on the regional and international level are the response that the project provided with the objective of improving the sector of metal processing in Prijedor.

Procurement of computer equipment with industrial performances was performed, and the staff was trained for using it.

Partners were connected into a networking platform whose objective is to connect enterprises within the sector and with networks on all the levels.

Lessons learned under the project were presented in the form of recommendations in a document entitled Program of Support to Development of Local Metal Processing Industry, which was ceded to the City of Prijedor Administration in order to create a model for support on sector level.

154

RESULTS In order for the passive approach to sales activities to

The new labor force also gave its contribution to

become proactive, along with application of modern

improvements in business operations. Upon the

marketing trends, training was performed on advantages

completion of the training in SolidWorks – solid state

and application of digital marketing for representatives

modelling, six graduates of the Prijedor School of

of ten enterprises. The knowledge acquired was, inter

Mechanical Technology got their first employment in one

alia, used for improving the quality content of existing

of the partner enterprises. This concerns six new jobs of

and creating new websites, more intensive use of social

the total of 39, which is the number envisaged for 2019.

networks and establishment of online sales platforms.

In the same period, growth in sales and export rate is also

It is expected that, thanks to the training, the number of

expected, at 10%.

tools used in the enterprises will increase from two to eight

Within the project a networking platform was developed –

in 2019, along with engagement of four persons, at the

a network of enterprises in metal industry of Prijedor. The

minimum.

objective of the network is to encourage connections within

The low level of knowledge and comparison of information

the sector, exchange of information and promotion, and

technologies in business was resolved by procuring

more information are available at www.metalprijedor.net.

adequate equipment and a set of specialist trainings.

The project also advanced one step in the context of

Thanks to the project, four sets of computer equipment of

integrating the sector in regional and global value chains,

industrial performances, CAD/CAM software and devices

initiating networking missions that served to connect with

for faster prototype development are now in ownership

clusters in Serbia, Austria, and Germany.

of project partners, and the staff was trained to use them.

It is expected that the networking will result in presenting

Effects are already felt: shortened period of development

four new products at the individual level of the enterprises

of technical bids from sic to four working days, and for

and two joint products.

prototypes from 25 to 15.

155

SUPPORTING EXPORTING AMBITIONS OF METAL PROCESSING SECTOR

PROJECT NAME:

OBJECTIVES

Strengthening exporting capacities of small and

• Improving capacities of small and medium

medium enterprises in the metal processing sector

enterprises in the metal sector for accessing external markets and increasing their competitiveness

SECTOR:

• Ensuring continuous support for exporting for

:

enterprises from the metal sector by creating a

Metal processing

standardized set of services “Package of services for export support”

LOCATION: Prijedor, Derventa, Laktaši

BUDGET IMPLEMENTED BY:

Project value: EUR 112.065

Republika Srpska Chamber of Commerce

(BAM 219.180,09) Grant: EUR 89.569 (BAM 175.181,74)

PARTNERS: • Metalac MBM Ltd. Derventa

PROJECT EXECUTION:

• Vendom Ltd. Laktaši

15 months

• Elker Co. Ljubija

156

ABOUT THE PROJECT In cooperation with three small and medium enterprises from the Banja Luka region, the Republika Srpska Chamber of Commerce initiated a project directed towards establishing a systematized approach to strengthening exporting capacities of the metal processing sector.

Project activities have overcome the lack of support to exporting within the Chamber and improved the standard of quality and preparedness of the enterprises for presentation in external markets.

The Chamber created a standardized set of services for supporting exports and implemented the training of the Chamber’s staff in order to provide the best quality and the most efficient support to exporting ambitions of enterprises.

Training was also implemented for staff of the enterprises, during which they were acquainted with all relevant aspects of exporting, as well as with ways to promote their potentials in external markets. A contribution to that will also be provided by the EN 1090 quality standard – the CE-marl for metal constructions and a guarantee of EU quality of the products, which the enterprises will acquire after certification.

157

RESULTS Within the project, the capacities of the Chamber’s

process of certification of nine enterprises in compliance

staff have been strengthened in, inter alia, the area

with various international quality standards.

of communication skills and negotiation skills, as well

The enterprises are, in future, expected to use the

as advanced computer programs, wile the staff of ten

knowledge and experiences they gathered in the training

enterprises was acquainted with the relevant legislation

and business networking for better preparing their

and requirements of specific external markets, as well as

presentation in the external market, as well as to intensify

with the basics of marketing and branding.

marketing and promotional activities.

Both groups had an opportunity to improve the acquired

Support from the Chamber will not be lacking. With

knowledge, be informed about trends in the industry, and

the newly created set of services for export support, the

establish new business contacts in the course of study tours

Chamber will continue to provide services of information,

to visit enterprises in Slovenia and Austria. They presented

training, consulting and promotion, not only in the metal

to their hosts a promotional publication of investment

processing sector but in all the others and will continuously

and development potentials of the sector, as well as

work on improving the quality of services it is providing.

comparative advantages of the enterprises, which was

It is assessed that in 2019 the enterprises involved in this

prepared during the project.

project will contribute to increasing the total rate of exports

Better approach and promotion in external markets also

of Republika Srpska by 5% and creating ten new jobs.

requires adequate quality standards for products and

Growth of 5% is also expected in relation to the volume of

business processes. Therefore, the Chamber supported the

production and sales in the local market.

158

NETWORKING FOR INNOVATIONS IN WOOD PROCESSING AND METAL PROCESSING PROJECT NAME: • TIKT Manufaktura Ltd. Gradiška

KRIN – Creating Regional Innovation Network

• Drvomehanika Ltd. Banja Luka SECTOR:

• Export City Ltd. Prnjavor

:

Wood processing

• Metalska industrija Ltd. Prijedor

-

• Reflex Ltd. Gradiška

Metal processing OBJECTIVES FOCUS

• Improving operations of sector boards and

Networking and innovations

developing initial innovation network for the sectors of metal processing and wood processing in the territory of the region of Banja Luka

LOCATION: Prijedor, Kozarska Dubica, Gradiška, Laktaši, Srbac,

BUDGET

Prnjavor, Derventa, Banja Luka

Project value: EUR 119.217,87 IMPLEMENTED BY:

(BAM 233.169,89)

Enterprise Development Agency EDA Banja Luka

Grant: EUR 95.100,43 (BAM 186.000,27)

PARTNERS:

PROJECT EXECUTION:

• Spektra DMG Ltd. Banja Luka

15 months

• Drvoprodex Ltd. Banja Luka

159

ABOUT THE PROJECT By removing two key obstacles – lack of innovation and networking – this project has contributed to strengthening the competitiveness of the wood processing and metal processing sectors of the Banja Luka region.

Under the project, an initial innovation network was established, with the tendency of its gradually growing into a regional network. The structure of sectoral boards has been expanded, in order to cover representatives of public administrations, also, and the model of their work has also been improved. Project partners are also connected through an interactive database on available equipment that can be ceded on commercial basis.

Project achievements were presented in the publication on positive practices under the project, innovations and leaders in innovations in the region and abroad.

160

RESULTS Initial innovation network was founded in the sectors of

time, an opportunity to get acquainted with the way of

wood processing and metal processing, on the basis

doing business that achieves good results in the segment

of the assessment that innovative capacity could be

of innovation of products and processes.

significantly improved by strengthening the networking

An incentive to networking enterprises was also provided

between enterprises, as well as between enterprises and

with the establishment of the interactive database of

support institutions. In short-term, it is expected that it will

members of the network with a focus on equipment that

contribute to an increased number of innovations within

is available on commercial basis. This concerns a unique

enterprises and support institutions, and in long-term grow

project in BiH, which will, in its next phase, also cover data

into a regional innovation network.

on consulting services of support institutions.

In that direction, activities have been undertaken towards

Research was performed on the condition, constraints

strengthening the operations of sectoral boards. Along

and possibilities for updating and business networking

with the new, expanded structure of membership, which

in both sectors, and the findings were published in two

now covers representatives of the public sector and

publications. Parts are available in the form of a blog on

support institutions, and a new way of working along

the website on the address www.edabl.org.

with regular meetings and thematic workshops, the level

It is assessed that project activities will result in growth of

of communication between the relevant stakeholders

sales and exports of partner enterprises by 10% by the end

has been improved and the foundation was created for

of 2019 and that the minimum of 40 new jobs would be

a stronger impulse in creating innovative orientation of

created. It is also expected that the practices, models and

enterprises.

tools developed during the project would be taken over by

Insight into good practices in operations of sectoral boards

10-15 enterprises and support institutions and that seven

was facilitated by the study visit to enterprises and research

new members would join the innovation network.

centers in Slovenia and Austria. That was, at the same

161

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